the allowable risk of assessing control risk too low . the nonsampling risk
53 . The steps used in sampling during substantive testing includes the determination of each of the following except ( Points : 4 ) the audit objective . the method of selecting a sample . expected misstatement conditions control failure risk .
54 . The design of a PPS sample requires the auditor to determine all of the following except ( Points : 4 ) detection risk . inherent risk . tolerable misstatement . expected misstatement in the account balance .
55 . Which of the following is the best example of the control objective in the revenue cycle that all transactions are recorded accurately ? ( Points : 4 )
Sales are recorded at the invoice price expected to be collected from customers . Sales orders have sequential numbering . Recorded sales transactions are evidenced by valid invoices and shipping documents . Credits to customer accounts are classified as liabilities .
56 . In an audit of financial statements , the risk of the high rate of return of products sold includes that of ( Points : 4 )