Question

32. an auditor is preparing to sample the appropriateness of signature on check appropriate statistical sampling method is

Discovery sampling

ratio estimation

PPS sampling

Attributes sampling

16. what element is required to prove fraud?

A. intent

B. Preponderance of the evidence

C. confession of the perpetrator

D. Falsification of documentation

25. Which of the following combination result in decrees in sample size in variation sampling context?

Tolerable misstatement                                                Variation in Account balance

A) Increase                                                                                      Increase

B) Decrease                                                                                   Decrease

C) Increase                                                                                      Decrease

D) Decrease                                                                                       Increase

Answer 1

32. Attributes Sampling. An attribute is a qualitative characteristic which can not be measured in quantitative terms i.e it measures qualitative attributes.

Thus, attributes sampling is used to sample the appropriateness of signature on check.

16. A. Intent

The representer’s intent is required to prove fraud. What was the intention behind doing a wrongful thing.

25. Tolerable misstatement and sample size have an inverse relationship. Account balance and sample size have direct relationship.

C. Tolerable Misstatement increase and variation in account balance decrease.