Question #1:

Richard Nguyen has been tasked with performing analytical procedures on the audit of Grey Inc. Which one of the following can be used to perform analytical procedures?

a. preparation of common sized financial statements.

b. all of the above

c. ratio analysis

d. break-even analysis

Question #2:

Yu Gou is trying to ensure that he can review controls over purchasing transactions. In addition, he would like to substantiate the dollar amounts he is reviewing. What type of procedures can he perform that will provide evidence as to whether a control is effective as well as if an item is being recorded properly?

a. statistical sampling

b. test of controls

c. test of balances

d. dual purpose tests

Question #3:

Which one of the following is when variables estimation sampling is used?

a. to obtain a level of confidence that key attributes for the sample tested can be inferred to be in existence for the entire population.

b. if the auditor expects more than a few errors in an account balance.

c. when the auditor does not expect any errors in an account balance.

d. when the auditor conducts tests of controls.