AUDIT EXAM 2 CHAPTER 9 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Audit Sampling - Answers Applying an audit procedure to less than 100% of a population to estimate
some characteristic of the entire population.
Qualitative Audit Sampling - Answers Selecting items based on characteristics or risk, such as
anything unusual, unexpected, or related-party transactions, to identify potential misstatements or
fraud.
Quantitative Audit Sampling - Answers Selecting items partially based on dollar amounts to estimate
totals or balances in the population; often focuses on large, unusual, or very small amounts.
Sampling Risk - Answers Risk that the auditors' conclusion based on a sample may be different from
the conclusion they would reach if they examined every item in the population
Effective - Ensures the procedure achieves its audit objective, e.g., receivable confirmations.
Efficient - Avoid unnecessary work; e.g., testing 50 items instead of 200 when sufficient.
Sufficient - Sample size must be large enough to provide reliable evidence and properly designed to
support conclusions.
Competent/Reliable - Evidence must be trustworthy and not altered. - Answers 4 Key Considerations
when Audit Sampling
Non-sampling risk - Answers Risk of reaching the wrong conclusion for reasons other than the
sample, such as mistakes, misinterpretation, or failure to perform procedures correctly (auditor error)
Projected Misstatement - Answers the estimated total misstatement in the population based on the
results of the audit sample, assuming that the misstatement found in the sample applies
proportionally to the rest of the population. It helps auditors assess the likely impact on the financial
statements.
Non-statistical sampling - Answers when auditors use their judgment to plan, perform, and evaluate
the sample, and it is often used for smaller populations.
Statistical Sampling - Answers when auditors use mathematics and statistics to plan, perform, and
evaluate the sample, often based on the probability that there is more risk in a certain area, and it
tends to be more expensive
Statistical sampling allows auditors to measure and control sampling risk, which helps:
Design efficient samples
Measure sufficiency of evidence
Objectively evaluate sample results - Answers Advantages of Statistical Sampling
Representative Sample - Answers A sample that is reflective of the entire population, allowing
auditors to draw conclusions about the population with reasonable confidence.
Random number generator (e.g., use IDEA or Excel)
Random number tables
Systematic selection - Answers Primary random sample techniques
Systematic selection - Answers type of random sample where it consists of selecting every nth item.
Sometimes may result in a biased sample. For example, in some circumstances when the population is
not in a random order.
Haphazard Selection - Answers a sampling method where auditors select items on an arbitrary basis
without any conscious bias, rather than using formal random techniques.
Block Selection - Answers a sampling method where the sample consists of all items in a selected
time period, numerical sequence, or alphabetical sequence, rather than being spread across the
population.
Stratification - Answers a sampling technique where the population is divided into relatively
homogeneous subgroups to allow for more precise and efficient sampling. (such as size, value, or type
of transaction.)
positive confirmation - Answers requires the recipient to respond in all cases, whether they agree or
disagree with the information.
negative confirmation - Answers asks the recipient to respond only if they disagree with the
information.
Attributes sampling - Answers used to determine whether a specific control or procedure was
performed and whether there were any deviations from company policy.
Ex: An auditor checks invoices to see if a manager approved them before payment.
Audit Sampling - Answers Applying an audit procedure to less than 100% of a population to estimate
some characteristic of the entire population.
Qualitative Audit Sampling - Answers Selecting items based on characteristics or risk, such as
anything unusual, unexpected, or related-party transactions, to identify potential misstatements or
fraud.
Quantitative Audit Sampling - Answers Selecting items partially based on dollar amounts to estimate
totals or balances in the population; often focuses on large, unusual, or very small amounts.
Sampling Risk - Answers Risk that the auditors' conclusion based on a sample may be different from
the conclusion they would reach if they examined every item in the population
Effective - Ensures the procedure achieves its audit objective, e.g., receivable confirmations.
Efficient - Avoid unnecessary work; e.g., testing 50 items instead of 200 when sufficient.
Sufficient - Sample size must be large enough to provide reliable evidence and properly designed to
support conclusions.
Competent/Reliable - Evidence must be trustworthy and not altered. - Answers 4 Key Considerations
when Audit Sampling
Non-sampling risk - Answers Risk of reaching the wrong conclusion for reasons other than the
sample, such as mistakes, misinterpretation, or failure to perform procedures correctly (auditor error)
Projected Misstatement - Answers the estimated total misstatement in the population based on the
results of the audit sample, assuming that the misstatement found in the sample applies
proportionally to the rest of the population. It helps auditors assess the likely impact on the financial
statements.
Non-statistical sampling - Answers when auditors use their judgment to plan, perform, and evaluate
the sample, and it is often used for smaller populations.
Statistical Sampling - Answers when auditors use mathematics and statistics to plan, perform, and
evaluate the sample, often based on the probability that there is more risk in a certain area, and it
tends to be more expensive
Statistical sampling allows auditors to measure and control sampling risk, which helps:
Design efficient samples
Measure sufficiency of evidence
Objectively evaluate sample results - Answers Advantages of Statistical Sampling
Representative Sample - Answers A sample that is reflective of the entire population, allowing
auditors to draw conclusions about the population with reasonable confidence.
Random number generator (e.g., use IDEA or Excel)
Random number tables
Systematic selection - Answers Primary random sample techniques
Systematic selection - Answers type of random sample where it consists of selecting every nth item.
Sometimes may result in a biased sample. For example, in some circumstances when the population is
not in a random order.
Haphazard Selection - Answers a sampling method where auditors select items on an arbitrary basis
without any conscious bias, rather than using formal random techniques.
Block Selection - Answers a sampling method where the sample consists of all items in a selected
time period, numerical sequence, or alphabetical sequence, rather than being spread across the
population.
Stratification - Answers a sampling technique where the population is divided into relatively
homogeneous subgroups to allow for more precise and efficient sampling. (such as size, value, or type
of transaction.)
positive confirmation - Answers requires the recipient to respond in all cases, whether they agree or
disagree with the information.
negative confirmation - Answers asks the recipient to respond only if they disagree with the
information.
Attributes sampling - Answers used to determine whether a specific control or procedure was
performed and whether there were any deviations from company policy.
Ex: An auditor checks invoices to see if a manager approved them before payment.
