Home > Mechanical Engineering > Quizzes > Auditing & Assurance 101 Practice Test: Audit Sampling for Tests of Details and Balances
Auditing & Assurance 101 Practice Test: Audit Sampling for Tests of Details and Balances
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 13% • Most missed: “Your audit sampling program states:”
Audit sampling for tests of details of balances is a technique that auditors use to measure monetary misstatements. It involves selecting less than 100% of the items in a population for audit, and then applying audit procedures to the sample. The results from the sample are then used to estimate the population, and the auditor can use this information to issue opinions.  Auditors use audit sampling to: - Reduce the risk of assessed control - Determine if the exception rate in the population is low enough - Confirm that the control is working effectively for auditing internal control over... Show more
Auditing & Assurance 101 Practice Test: Audit Sampling for Tests of Details and Balances
Time left 00:00
25 Questions

1. When using monetary-unit sampling, evaluating the likelihood of unrecorded items in the population is:
2. The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:
3. The primary factor affecting the auditor's acceptable risk of incorrect acceptance is assessed as inherent risk when quantifying audit risk.
4. Sampling used for tests of details of balances provides results in terms of:
5. Stratified sampling is applicable to difference, mean-per-unit, and ratio estimation, but it is most commonly used with:
6. The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:
7. In monetary-unit sampling, the relationship between tolerable misstatement size and required sample size is:
8. Acceptable risk of incorrect rejection affects auditors' action only when they conclude that a population is:
9. The acceptable risk of incorrect acceptance is most related to:
10. Which of the following is not a type of statistical method that provides results in dollar terms?
11. If the auditor believes that there will be more than just a few exceptions discovered, and desires an accurate estimate of the dollar value of the exceptions, he or she will use:
12. The major reason that the difference and ratio estimation methods would be expected to produce audit efficiency is that the:
13. Which of the following is not a problem with monetary-unit selection?
14. What is the primary objective of using stratified sampling in auditing?
15. The purpose of stratified sampling is to achieve a greater confidence level (lower risk of incorrect acceptance) for a given sample size.
16. The auditors principal objective when using a sample of tests of details of balances is whether the:
17. Acceptable audit risk (AAR) and acceptable risk of incorrect acceptance (ARIA) are inversely related; that is, as AAR increases, ARIA decreases.
18. An auditor using nonstatistical sampling cannot formally measure sampling error.
19. Your audit sampling program states: the upper misstatement limit is $13,200 and the risk of incorrect acceptance is at the 95% confidence level. This means:
20. In the application of statistical techniques to the estimation of dollar amounts, a preliminary sample is usually taken primarily for the purpose of estimating the population:
21. If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?
22. Attributes sampling tables can be used to evaluate results of tests of details with Acceptable risk of assessing control risk too low (ARACR) being replaced with acceptable risk of incorrect acceptance (ARIA).
23. The statistical results when Monetary-Unit Sampling (MUS) is used are called exception bounds.
24. The client's trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:
25. The final step in the evaluation of the audit results is the decision to:

⚡ Recently practiced quizzes in this topic
Live quiz activity
Thermodynamics: First Law of Thermodynamics Manufacturing Engineering Practice Test: Metal Cutting - Mechanics of Cutting Mechanical Engineering Mechanical Engineering Practice Test: Refrigeration Mechanical Engineering Practice Test: Production Technology ME203 Final Exam - Materials and Materials Processing Mechanical Engineering Practice Questions Production Planning and Control: Introduction Design of Mechanical Systems Production Planning and Control: Scheduling And Sequencing
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.