Page 42 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

530.10 SM21
As the number of transactions of WY Limited for the financial year 2018-19 were in very large
number, the auditor of WY Limited decided to use the technique of Audit Sampling. Before selecting
the sample from Repair and Maintenance Expenses, the auditor of WY Limited wished that entire
data of Repair and Maintenance Expenses of WY Limited for financial year 2018-19 should have
three characteristics. These three characteristics are:
a) Simple, Completeness, Relevant.
b) Appropriateness, Simple, Relevant.
c) Reliable, Simple, Relevant.
d) Appropriateness, Completeness, Reliable.

530.11 SM21
In random Sample, each item of population has
a) equal chance of selection
b) has varying chance of selection depending upon placing of items.
c) may have a chance of selection based on auditor’s professional judgement
d) All of these

530.12 SM21
Statistical sampling has the following characteristics
a) Random selection
b) Use of Probability theory
c) both (a) and (b)
d) Judgmental approach.

530.14 SM21/M23M
The relationship between tolerable error and sample size is
a) Inverse
b) Direct
c) Close
d) There is no relationship.

530.15 M21R
___________ in which the auditor selects the sample without following a structured technique.
a) Haphazard selection,
b) Monetary Unit Sampling
c) Block Sampling
d) Structured Sampling

530.16 SM23
Which of the following is not an advantage of statistical sampling?
a) Sample size does not increase in proportion to size of area tested.
b) Sample selection is more objective.
c) It provides a means of deriving a calculated risk and corresponding precision.
d) In case of verifying compliance with specific legal requirements, it is suitable.

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