1. A simple random sample requires that a. The population be unbiased b. Every item in the population have an equal chance of being selected c. The distribution or original data be approximately normal d. The expected deviation rate be low (less than 5%)
2. An auditor wishes to sample 200 sales receipts from a population of 5,000 receipts issued during the last year. The receipts have preprinted serial numbers and are arranged in chronological (and the serial number) order. The auditor randomly chooses a receipt from the first 25 receipts and then selects every 25th receipt thereafter. Ths ampling procedure described here is called a. Systematic random sampling b. Dollar unit sampling c. Judgment interval sampling d. Variables sampling
3. Internal auditing is conducting an operational audit of the organization's mailroom activities to determine whether the use of express mail service is limited to cases of necessity. To test cost-effectiveness, the auditor selects the 100 most recent express mial transactions for review. A major limitation of such a sampling technique is that it a. Does not allow a statistical generalization about all express mail transactions b. Results in a sample size that is too small to project to the population c. Does not evaluate existing controls in this area d. Does not describe the population from which it was drawn
4. To use stratified sampling to evaluate a large, heterogeneous inventory, which of the following would least likely be used as a criterion to classify inventory items into strata? a. Dollar value b. Number of items c. Turnover volume d. Storage locations
5. Which of the following is not a criterion for a good stratified random sampling plan? a. Every item must belong to one and only one stratum b. The original population of items must be normally distributed c. An identifiable means of subdividing a heterogeneous population into groups with more homogeneous characteristics must be available d. The number of items in each group must be known or determinable
6. In a regional survey of suburban households to obtain data on television viewing habits, a statistical sample of suburban areas is first selected. Within the chosen areas, statistical samples of whole blocks are selected, and within the selected blocks, random samples of households are selected. This type of sample selection can best be described as a. Attribute sampling b. Stratified sampling c. Cluster sampling d. Interval sampling
7. You seek to determine the misstatements made in recording sales invoices. Which of the following factors will usually be most significant in determining the number of sales invoices to select for testing? a. The total number of invoices for the period b. The estimated loss being incurred by the division c. The dollars of sales considered to be material d. The precision desired
8. In an audit of a governmental agency, you are searching for expenditures that are improperly classified. Assuming a statistical sampling plan is adopted, which of the factors listed below most directly affects the number of items that you seek to review? a. Magnitude of the dollar budget for the agency b. Number of items you found misclassified in last year's audit c. Quality of the internal control structure d. Estimated deviation rate
