ACCY 501 EXAM 2 QUESTIONS AND
ANSWERS ALL CORRECT
What are the parameter values affecting sample size? - Answer- - Acceptable risk of
assessing control risk too low
- Tolerable deviation rate
- Expected population deviation rate
- Planned allowance for sampling risk or planned precision
Simple random sampling - Answer- random number table or computerized random
number generator
Systematic sampling - Answer- randomly identify a starting point and select every nth
item
If upper deviation limit is less than the tolerable deviation rate - Answer- Control is
effective
4 Common ways that data analytics are used in internal audit - Answer- Compliance
Fraud detection and investigation
Operational Performance
Internal Controls
4 Types of Data Analytics - Answer- Descriptive
Diagnostic
Predictive
Prescriptive
Audit Sampling - Answer- The application of an audit procedure to less than 100% of
the items in a population for the purpose of drawing an inference about an entire
population
Two general approaches to sampling - Answer- Statistical
Non statistical
Sampling Risk - Answer- the risk that the internal auditor's conclusion based on testing
items in a sample may be different than the conclusion reached if the audit procedure
was applied to all items in the population
ANSWERS ALL CORRECT
What are the parameter values affecting sample size? - Answer- - Acceptable risk of
assessing control risk too low
- Tolerable deviation rate
- Expected population deviation rate
- Planned allowance for sampling risk or planned precision
Simple random sampling - Answer- random number table or computerized random
number generator
Systematic sampling - Answer- randomly identify a starting point and select every nth
item
If upper deviation limit is less than the tolerable deviation rate - Answer- Control is
effective
4 Common ways that data analytics are used in internal audit - Answer- Compliance
Fraud detection and investigation
Operational Performance
Internal Controls
4 Types of Data Analytics - Answer- Descriptive
Diagnostic
Predictive
Prescriptive
Audit Sampling - Answer- The application of an audit procedure to less than 100% of
the items in a population for the purpose of drawing an inference about an entire
population
Two general approaches to sampling - Answer- Statistical
Non statistical
Sampling Risk - Answer- the risk that the internal auditor's conclusion based on testing
items in a sample may be different than the conclusion reached if the audit procedure
was applied to all items in the population
