QUESTION: 85 Exam Topic: 1, Volume A

If an auditor used nonstatistical sampling instead of statistical sampling to estimate the value of inventory, which of the following would be true?

The confidence level could not be quantified.
The precision would be larger.
The projected value of inventory would be less reliable.
The risk of incorrect acceptance would be higher.

Answer(s): A

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QUESTION: 86 Exam Topic: 1, Volume A

In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the.

Population.
Attribute of interest.
Sample.
Sampling unit.

Answer(s): A

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QUESTION: 87 Exam Topic: 1, Volume A

An internal auditor would most likely use attributes sampling when testing which of the following?

Accounts receivable balances.
Correct coding of accounts payable disbursement vouchers.
Year-end inventory value.
Fixed asset book value.

Answer(s): B

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QUESTION: 88 Exam Topic: 1, Volume A

An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?

Confirm accounts receivable.
Confirm accounts payable.
Review the endorsements and banks of deposit on customers' canceled checks.
Flowchart and analyze key controls in the cash receipts process.

Answer(s): D

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Free IIA-CIA-Part2 Exam Braindumps (page: 22)

QUESTION: 85 Exam Topic: 1, Volume A

QUESTION: 86 Exam Topic: 1, Volume A

QUESTION: 87 Exam Topic: 1, Volume A

QUESTION: 88 Exam Topic: 1, Volume A