MCQ for CA Intermediate Audit - Chapter 7 - Audit Sampling

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 6 - Auditing and Assurance - Chapter 7: Audit Sampling - For Practice relevant for May/November 23 Examinations

Q:1 Which of the following is source of Non-Sampling risk?

  1. Human Mistakes
  2. Applying audit procedures not appropriate to the objectives of audit
  3. Misinterpreting the sample results
  4. All of the above

Answer: 4

Q:2 Value-weighted selection in which sample size, selection and evaluation results in a conclusion in monetary amounts, is known as:

  1. Haphazard sampling
  2. Monetary Unit Sampling
  3. Stratified Sampling
  4. Interval sampling

Answer: 2

Q: 3 Which of the following is false?

  1. Audit sampling can be applied using either non-statistical or statistical sampling approaches.
  2. The level of sampling risk that the auditor is willing to accept affects the sample size required
  3. Example of sampling risk include use of inappropriate audit procedures or misinterpretation of audit evidence and failure to recognise a misstatement.
  4. All of the above

Answer: 3 

Q:4 Which among the following will have negligible effect on determination of sample size in case of tests of details?

  1. The number of sampling units in the population
  2. Stratification of the population when appropriate
  3. An increase in the auditor's desired level of assurance that tolerable misstatement is not exceeded by actual misstatement in the population
  4. An increase in the use of other substantive procedures directed at the same assertion

Answer: 1

 

Q:5 Which of the following factors is (are) considered in determining the sample size for tests of control?

  1. Projected error
  2. Tolerable error
  3. Expected error
  4. Both (b) and (c)

Answer: 4

CA Intermediate AUDIT - MCQ for Chapter 8 -   

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