Test Bank for Auditing & Assurance Services 12th Edition by William Messier

Student name:__________
1) Why do auditors often use a sampling approach to evidence gathering?



A) Auditors are experts and do not need to look at much to know whether the financial
statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision and for some
types of evidence, computer data analytic approaches can’t be used.
C) Auditors must limit their exposure to their auditee to maintain independence.
D) The auditor's relationship with the auditee is generally adversarial, so the auditor will
not have access to all of the financial information of the company.




2) Which of the following statements best describes a relationship between sample size and
other elements of auditing?



A) If materiality increases, so will the sample size.
B) If the desired level of assurance increases, sample sizes can be smaller.
C) If materiality decreases, sample size will need to increase.
D) There is no relationship between sample size and materiality or the desired level of
assurance.


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3) Which of the following statements about the study of auditing is NOT true?




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