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    Chapter 17 Review Questions

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    natalie clyde mates
    This document contains 11 review questions about auditing account balances. The questions cover topics such as the risks of incorrect acceptance and rejection decisions, methods for projecting misstatements to a population, stratifying account balances, determining materiality, audit objectives, factors that influence sample sizes, steps in quantitative evaluation of evidence, considering undetected misstatements, and planning interim audits. It also asks about differentiating between two sampling methods.

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    Chapter 17 Review Questions

    Uploaded by

    natalie clyde mates
    30 views1 page
    This document contains 11 review questions about auditing account balances. The questions cover topics such as the risks of incorrect acceptance and rejection decisions, methods for projecting misstatements to a population, stratifying account balances, determining materiality, audit objectives, factors that influence sample sizes, steps in quantitative evaluation of evidence, considering undetected misstatements, and planning interim audits. It also asks about differentiating between two sampling methods.

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    This document contains 11 review questions about auditing account balances. The questions cover topics such as the risks of incorrect acceptance and rejection decisions, methods for projecting misstatements to a population, stratifying account balances, determining materiality, audit objectives, factors that influence sample sizes, steps in quantitative evaluation of evidence, considering undetected misstatements, and planning interim audits. It also asks about differentiating between two sampling methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views1 page

    Chapter 17 Review Questions

    Uploaded by

    natalie clyde mates
    This document contains 11 review questions about auditing account balances. The questions cover topics such as the risks of incorrect acceptance and rejection decisions, methods for projecting misstatements to a population, stratifying account balances, determining materiality, audit objectives, factors that influence sample sizes, steps in quantitative evaluation of evidence, considering undetected misstatements, and planning interim audits. It also asks about differentiating between two sampling methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    REVIEW QUESTIONS AND EXERCISES

    Questions

    1. When auditing account balances, why is an incorrect acceptance decision considered


    more serious than an incorrect rejection decision?

    2. What are two methods of projecting the known misstatement to the population?

    3. What kind of evidence evaluation consideration should an auditor give to the peso
    amount of a population unit that cannot be audited?

    4. What audit purpose is served by stratifying an account balance population and by


    removing some units from the population for 100 percent audit attention?

    5. What should be the relationship between tolerable misstatement in the audit of an


    account balance and the amount of monetary misstatement considered material to the
    overall financial statements?

    6. What general set of audit objectives can you use as a frame of reference to be
    specific about the particular objectives for the audit of an account balance?

    7. What is the influence on peso-value variables sample sizes of the risk of incorrect
    acceptance, the risk of incorrect rejection, the tolerable misstatement, the population
    variability and the population size?

    8. What are the three basic steps in quantitative evaluation of monetary amount
    evidence when auditing an account balance?

    9. The projected likely misstatement may be calculated, yet further misstatement might
    remain undetected in the population. How can auditors take the further misstatement
    under consideration when. completing the quantitative evaluation of monetary
    evidence?

    10. What additional considerations are in order when auditors plan to audit account
    balances at an interim date several weeks or months before the client's fiscal
    ar-end-date?

    11. Differentiate between classical variables sampling and probability proportional to


    size sampling.

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