Quiz - Audit Procedures

1. An audit test involves the identification of missing check numbers from a series of checks used to make disbursements. Which of the following audit tests would BEST be used to perfom this test?

A. Duplicate voucher payments test procedure.
B. Kolmogorv-Smirnov test for equality.
C. Gap test for sequences.
D. Chi-Squared test in conjunction with Student's T-test.

2. In selecting a sample size to perform attribute testing, as the expected error rate rises, so too would the required sample size, assuming that all other factors remain constant.

True
False

3. A Pareto chart would often be helpful in identifying outlier amounts.

True
False

4. The most frequently occurring value found in the population is known as the "median".

True
False

5. Generally, if the population contains any outliers, they will be within one standard deviation of the mean.

True
False

6. Population statistics would generally NOT be useful to:

A. Classify the data for testing
B. Determine if the population being tested ties to the account balance.
C. Document business rules in place
D. Plan a random sampling test to be performed.

7. As a general rule, any population being tested will be normally distributed.

True
False

8. A cross-tabulation test would be most useful for:

A. Testing inter-period allocation amounts
B. Validating international transfer pricing
C. Determining a relationship or association between two variables
D. All of the above

9. Generally, linear regression analysis would NOT be useful in order to

A. Determine the reasonableness of sales tax paid, expressed as a percentage of invoice cost
B. Determining how strong the relationship might be between sales and cost of sales
C. Performing a trend analysis over time
D. Testing commissions paid, in relationship to sales
E. Direct confirmation of bank account balances

Quiz form generated from MS-Excel using EZ-R Quiz

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