ACC 403 help A Guide to career/Snaptutorial ACC 403 help A Guide to career/Snaptutorial | Page 87

16. The risk the auditor is willing to take of accepting a balance as
correct when the true misstatement in the balance under audit is
greater than the tolerable misstatement is:
17. The allowance for sampling risk when no misstatements are
found in the sample is:
18. 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:
19. One of the steps involved in planning the sample for the tests of
details of balances is to:
20. You are auditing Nelson and Company and determined that the
sample results support a conclusion that the account is materially
misstated, when in fact it was not misstated. This illustrates the risk
of:
21. In monetary unit sampling, a sampling interval of 900 means
that:
22. The most commonly used method of statistical sampling for tests
of details of balances is:
23. If the population is not considered acceptable, one step the
auditor is likely to take is to:
24. The word below that best explains the relationship between
required sample size and the acceptable risk of incorrect acceptance
is:
25. As the amount of misstatements expected in the population
approaches tolerable misstatement, the planned sample size will:
26. 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?
27. When errors are found in a sample, auditors in practice generally
make the assumption:
28. The appropriate assumption to make regarding the overall
percent of error in those population items containing an error is:
29. Monetary unit sampling is not particularly effective at detecting: