AUD SIM Flashcards
(5 cards)
If the amount of risk an auditor is willing to accept goes DOWN, will the Sample Size INCREASE or DECREASE?
INCREASE
I believe this is because they need a larger sample size to make sure they don’t miss anything.
If the tolerable misstatement goes UP, will Sample Size INCREASE or DECREASE?
DECREASE
They are willing to tolerate more misstatement, so they don’t have to have as much info or evidence for the sample.
For PPS Sampling (Probability Proportional to Size Sampling), what amount of the error is added to the projected error for a population if an error is discovered in a piece of the population that is larger than the interval being used for the sampling? (For example, if the error was found in a piece of the population that was $4,000, but the interval is $3,000).
ADD THE ENTIRE ERROR
So for example, add the whole error found in the $4,000 piece of the population to the projected error.
If an auditor dual dates their audit report because of a subsequent even, does this make them responsible for everything that happens from the audit issuance date to the subsequent event? (Yes or No)
NO
Dual dating means the auditor is responsible for the audit report up to the date of issuance, and only responsible for the subsequent event after the issuance date.