Question

Below are some of the specific activities performed in a monetary unit sampling application. Indicate, using the correct letter, which major step in monetary unit sampling application is most closely associated with the specific activity. Each step is associated with only one activity.

A) Define the population.

B) Determine the objective of sampling.

C) Measure sample items.

D) Select the sample.

E) Define the attribute of interest.

F) Determine sample size.

G) Evaluate sample results.

Estimating the expected misstatement and tolerable misstatement.

                                                                                                   [ Choose ]EFBACDG

Identifying an example of what type of response from a customer constitutes an exception to an accounts receivable confirmation.

                                                                                                   [ Choose ]EFBACDG

Calculating the sampling interval.

                                                                                                   [ Choose ]EFBACDG

Calculating the basic allowance for sampling risk, projected misstatement, and incremental allowance for sampling risk.

                                                                                                   [ Choose ]EFBACDG

Identifying the financial statement assertion(s) of interest in the audit of an account balance or class of transactions.

                                                                                                   [ Choose ]EFBACDG

Determining the completeness of the client's electronic accounts receivable file.

                                                                                                   [ Choose ]EFBACDG

Calculating the tainting percentage.

Answer 1

1. Identification of the response from customer which constitutes exception to their account receivable confirmation

- E- Attribute of interest, I think is the most closely related step for the above said activity. Because by knowing or analysing the sample population behavioural interest we can ascertain various factors like the modifications of the products, its features & reliability based upon the likes & dislikes of the customer.

2. Calculating the sampling interval

- A- Define the population, It is one of the foremost part of any sampling procedure, Because based upon the objective of the sampling the target population is defined which is followed by others like important factors like size & the time intervals.

3.Allowance For The Sampling Risk

- B - Objective of the sampling, by specifying these we can effectively make the decisions upon whether the some extent of the risk can be ignored and it will not affect the final result substantially or these to be considered.

4. Identification Of the financial statement assertions of interest in the audit of an account balance or class of transactions

- D - Select the sample & analyse that for financial statement by auditing the account balance & class of transactions.

5. Completeness of clients account receivable file

- F - sample size

6. Calculating the tainting percentage

- G - By Evaluation of the sample results.