Page 41 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

530.4 SM21

The main advantage of using statistical sampling techniques is that such techniques:
a) Mathematically measure risk
b) Eliminate the need for judgmental sampling
c) Defines the values of tolerable error
d) All of them.

530.5 SM21
Tolerable error is the maximum monetary error that the auditor is prepared to accept in the

population and still conclude that audit achieved, is directly related to
a) Sample size
b) Audit risk
c) Materiality
d) Expected error

530.6 SM21
Which of the following factors is (are) considered in determining the sample size for tests of control?
a) Projected error
b) Tolerable error
c) Expected error
d) Both (b) and (c)

530.7 SM21
Which of the following is more scientific:

a) Statistical
b) Non- statistical
c) both (a) and (b)
d) none of the above

530.8 M19M

In the case of tests of details
a) the projected misstatement plus anomalous misstatement, if any, is the auditor’s best estimate
of misstatement in the population.
b) the projected misstatement is the auditor’s best estimate of misstatement in the population
c) the anomalous misstatement is the auditor’s best estimate of misstatement in the population.
d) the projected misstatement plus anomalous misstatement, if any, cannot be the auditor’s best
estimate of misstatement in the population.

530.9 M19M
Which of the following is correct:
a) When the projected misstatement exceeds tolerable misstatement, the sample does not
provide a reasonable basis for conclusions about the population that has been tested
b) When the projected misstatement plus anomalous misstatement, if any, exceeds tolerable
misstatement, the sample does not provide a reasonable basis for conclusions about the
population that has been tested
c) When the anomalous misstatement exceeds tolerable misstatement, the sample does not
provide a reasonable basis for conclusions about the population that has been tested.
d) When the projected misstatement plus anomalous misstatement, if any, exceeds tolerable
misstatement, the sample provides a reasonable basis for conclusions about the population
that has been tested
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