Audit Test Study Guide Rated A+

Data and procedural controls are a type of: A) general control. B) application control. C) physical control. D) none of the above. {Ans: A}An example of 'tracing' a transaction is: A) agreeing a sales invoice to an entry in the sales journal. B) selecting an entry in the sales journal and obtaining the relevant sales invoice. C) selecting an entry in the cash payments journal for the purchase of machinery and tracing the physical location of such machinery. D) a and c. {Ans: A}Stratification is a way of improving audit efficiency in sampling. Which sampling technique could be said to have a similar effect to stratification? A) Probability-proportional-to-size sampling B) Non-statistical sampling techniques C) Attribute sampling plans D) Variable sampling plans {Ans: A}Preliminary work on a time budget for an audit often is involved with: A) estimating the expected hours required at each staff level. B) identifying the charge-out rates at each staff level. C) estimating total costs by charge-out rates at each staff level. D) all of the above. {Ans: D}Audit risk is commonly assessed within the components: A) inherent risk and detection risk. B) inherent risk and control risk. C) control risk, detection risk