at 0405 preweek quizzer a xx

AUDITING THEORY CPA Review School of the Philippines Preweek Quizzer

1. An audit that involves obtaining and evaluating evidence about the efficiency and effectiveness of an entity’s operating activities in relation to specified objectives is a(n):A. internal audit C. operational auditB. external audit D. compliance audit

2. An audit that involves obtaining and evaluating evidence in order to determine whether certain financial or operating activities of an entity conform to specified conditions, rules, or regulations is a(n):A. internal audit C. operational auditB. external audit D. compliance audit

3. Which one of the following is not among the conditions that give rise to a demand by external users for independent audits of financial statements?A. remoteness of usersB. complexity of subject matterC. the securities acts, administered by the SECD. potential conflict of interest between users and preparers of the statementsE. Consequences for making decision

4. Within the generally accepted auditing standards, the general standards relate primarily to:A. Qualifications of the auditor and the quality of the auditor’s workB. Qualifications of the auditorC. the relationship between GAAS and generally accepted accounting principlesD. the fairness of the financial statementsE. the general distribution of audit reports

5. The essence of the due care standard is that the auditor should not be guilty of:A. bias C. errors in judgmentB. negligence D. fraud

6. Which of the following is an incorrect statement concerning one of the field work standards?A. Audit planning includes the development of audit strategies.B. Audit planning is aimed primarily at effectiveness, with little effect on efficiency.C. Understanding of the internal control structure is necessary in order to plan the audit.D. Proper supervision is essential because major portions of the audit are often executed by

staff assistants with limited experience.

7. Every independent audit engagement involves both auditing standards and auditing procedures. The relationship between the two may be illustrated by how they apply from engagement to engagement. The best representation of this application is that, from one audit engagement to the next,

A. B. C. D.Auditing Standards Apply uniformly May vary Apply uniformly May varyAuditing Procedures Apply uniformly Apply uniformly May vary May vary

8. The exercise of due professional care requires that an auditorA. use error-free judgmentB. study and review internal control, including tests of controlsC. critically review the work done at every level of supervisionD. examine all corroborating evidence available

9. The generally accepted standards of reporting encompass all of the following exceptA. consideration of an entity’s internal control structureB. consistent application of accounting principlesC. informative disclosuresD. conformity of financial statements with GAAP

10. An objective of the fourth generally accepted standard of reporting, relating to the expression of an opinion, is toA. prohibit the auditor from issuing a report that does not include an opinion on the financial

statements taken as a wholeB. inform users that the financial statements and related notes are the joint responsibility of

the auditor and managementC. prevent users of financial statements from misinterpreting the degree of responsibility

assumed by the auditorD. ensure adequate informative disclosure in the financial statements

11. When financial statements are presented that are not in conformity with generally accepted accounting principles, an auditor may issue a(n)

A. B. C. D.Qualified opinion Yes Yes No NoAdverse opinion No Yes Yes No

12. Under which of the following sets of circumstances might an auditor disclaim an opinion?A. the financial statements contain a departure from GAAP, the effect of which is materialB. the principal auditor decides to make reference to the report of another auditor who

audited a subsidiaryC. there has been a material change between periods in the method of the application of

accounting principlesD. there were significant limitations on the scope of the audit

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13. A CPA should comply with applicable GAAS on every engagementA. without exceptionB. except in examinations that result in a qualified reportC. except in engagement where the CPA is associated with unaudited financial statementsD. except in examinations of interim financial statements

14. An auditor may issue a qualified opinion forA. B. C. D.

Inadequate disclosure Yes Yes No NoScope limitation Yes No Yes No

15. Which of the following does not pertain to the standards of fieldworkA. adequate planning and supervisionB. obtaining sufficient competent evidential matterC. proper study and evaluation of internal control as a basis for reliance thereonD. technical competence

16. To be competent, evidence must be both:A. Timely and substantial C. Valid and relevantB. Reliable and documented D. Useful and objective

17. An auditor uses the knowledge provided by the understanding of the internal control structure and the final assessed level of control risk primarily to determine the nature, timing, and extent of the:A. Attribute tests C. Tests of controlsB. Compliance tests D. Substantive tests

18. Which one of the following assertions is not made by management in placing an item in the financial statements?A. Existence or occurrence C. Rights and obligationsB. Direct controls D. Presentation and disclosure

19. If reported sales for 20X0 erroneously include sales that occurred in 20X1, the assertion violated on the 20X0 statements would be:A. existence or occurrence C. valuation or allocationB. completeness D. presentation

20. Dual-purpose tests are audit tests designed to:A. test more than one control with a single procedureB. provide evidence for more than a single accounting periodC. test dual controls with multiple proceduresD. test for monetary errors while testing for compliance with controls

21. In the final analysis, the amount and kinds of evidential matters required to support the auditor’s opinion should be determined by:A. professional standardsB. the audit committeeC. auditor judgmentD. generally accepted auditing standards

22. The primary factor that distinguishes errors from irregularities isA. whether the underlying cause of misstatement relates to misapplication of accounting

principles or to clerical processingB. whether the misstatement is perpetrated by an employee or by a member of managementC. whether the misstatement is concealedD. whether the underlying cause of misstatement is intentional or unintentional

23. The term “error” refers to unintentional misrepresentation of financial information. Examples of errors are whenI. Assets have been misappropriatedII. Transactions without substance have been recordedIII. Records and documents have been manipulated and falsifiedIV. The effects of the transactions have been omitted from the recordsA. all of the above statements are true C. all of the above statements are falseB. only statements I and III are true D. only statements II and IV are true

24. Which of the following statements best describes an auditor’s responsibility to detect errors and irregularities?A. An auditor should design an audit to provide reasonable assurance of detecting errors and

irregularities that are material to the financial statements.B. An auditor is responsible to detect material errors, but has no responsibility to detect

material irregularities that are concealed through employee collusion or management override of the internal control structure.

C. An auditor has no responsibility to detect errors and irregularities unless analytical procedures or tests of transactions identify conditions causing a reasonably prudent auditor to suspect that the financial statements were materially misstated.

D. An auditor has no responsibility to detect errors and irregularities because an auditor is not an insurer and an audit does not constitute a guarantee

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25. What assurance does an auditor provide that illegal acts that are material to the client’s financial statements will be detected?

A. B. C. D.Direct Reasonable Reasonable Reasonable LimitedIndirect Reasonable Limited None Limited

26. If specific information comes to an auditor’s attention that implies the existence of possible illegal acts that could have a material, but indirect effect on the financial statements, the auditor should next.A. Apply audit procedure specifically directed to ascertaining whether an illegal act has

occurred.B. Seek the advice of an informed expert qualified to practice law as to possible contingent

liabilities.C. Report the matter to an appropriate level of management at least one level above those

involved.D. Discuss the evidence with the client’s audit committee, or others with equivalent authority

and responsibility.

27. The auditor will most likely perform extensive tests for possible understatement ofA. Revenues C. LiabilitiesB. Assets D. Capital

28. The four major steps in conducting an audit are:A. Testing internal controls C. PlanningB. Audit report D. Testing transactions and balances

The proper sequence in applying the above steps is:A. CADB C. BCDAB. CDAB D. ADCB

29. Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted?A. The entity has no formal written code of conductB. The integrity of the entity’s management is suspectC. Procedures requiring segregation of duties are subject to management overrideD. Management fails to modify prescribed controls for changes in conditions

30. The scope and nature of an auditor’s contractual obligation to a client is ordinarily set forth in the

A. Scope paragraph of the auditor’s report C. Management letterB. Opinion paragraph of the auditor’s report D. Engagement letter

31. Which of the following statements would least likely appear in an auditor’s engagement letter?A. Fees for our services are based on our regular per diem rates, plus travel and other out-

of-pocket expensesB. During the course of our audit we may observe opportunities for economy in or improved

controls over, your operationsC. Our engagement is subjected to the risk that material errors or irregularities, including

fraud and defalcations, if they exist, will not be detectedD. After performing our preliminary analytical procedures we will discuss with you the other

procedures we consider necessary to complete the engagement.

32. In the communication with the predecessor auditor, the potential successor should make specific and reasonable inquiries regarding matters that may affect the decision to accept the engagement.Which of the following items is least likely to be included in the inquiries?A. The integrity of managementB. Disagreements with management about accounting mattersC. Specific areas of audit difficulty and costD. The predecessor’s understanding of the reasons for a change in auditors

33. Concerning such matters as the integrity of management, errors and illegal acts, the auditor should plan the audit with an attitude of:A. cautious mistrust C. seasoned pessimismB. professional skepticism D. adversarial pursuit

34. Which one of the following is not a key step in planning the audit?A. Perform analytical proceduresB. Consider audit riskC. Make preliminary judgments about materiality levelsD. Obtain an understanding of the client’s external controls

35. Professional standards require the use of analytical procedures in the:A. planning and testing phasesB. testing phase and at the conclusion of the auditC. planning phase and at the conclusion of the auditD. planning and testing phases, and at the conclusion of the audit

36. A basic premise underlying the use of analytical procedures in auditing is that relationship among data may be expected to:

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A. vary randomlyB. vary in linear fashionC. vary in a predictable and orderly fashionD. continue in the absence of known conditions to the contrary

36. Which of the following elements underlies the application of generally accepted auditing standards, particularly the standards of field work and reportingA. Internal accounting control C. Quality controlB. Corroborating evidence D. Materiality and relative risk

38. In making a preliminary judgment about materiality, the auditor initially determines the aggregate (overall) level of materiality for each statement. For planning purposes, the auditor should use the:A. Levels separatelyB. Level he or she judges to be the more reliableC. Largest aggregate levelD. Smallest aggregate level

39. “Tolerable misstatement” is the termed used to indicate materiality at the:A. Balance sheet level C. Income statement levelB. Account balance level D. Company wide level

40. The risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial statements that are materiality misstated is:A. Detection risk C. Inherent riskB. Control risk D. Audit risk

41. All else being equal, as the level of materiality decreases, the amount of evidence required will:A. remain the same C. decreaseB. increase D. change in an unpredictable fashion

42. In general, as an account balance decreases, the amount of evidence required will:A. remain the same C. decreaseB. increase D. change in an unpredictable fashion

43. Which of the following would be considered the most conservative settings for inherent risk and control risk?

A. B. C. D.Inherent Risk 1.0 1.0 0.0 0.5

Control Risk 1.0 0.0 1.0 0.5

44. What is the likely effect of an audit of an increase in the acceptable level of detection risk?A. An auditor may change the nature of substantive tests from a less effective to more

effective procedure.B. An auditor may change the timing of substantive tests from year-end to interim.C. An auditor may change the assurance provided by test of control by using a larger sample

size than planned.D. An auditor may change the assessed level of control risk from below the maximum to the

maximum level.

45. Inherent and control risks are functions of the client and its environment while detection risk is not.Detection risk relates to the auditor’s procedures and can be changed at the auditor’s discretion.

A. Both statements are false C. True; FalseB. Both statements are true D. False; True46. Which of the following audit risk components may be assessed in nonquantitative terms?

A. B. C. D.Control risk Yes Yes Yes NoDetection risk Yes No Yes YesInherent risk No Yes Yes Yes

47. As the acceptable level of detection risk decreases, the assurance directly provided fromA. Substantive tests should increase C. Tests of control should increaseB. Substantive tests should decrease D. Tests of control should decrease

48. As the acceptable level of detection of risk decreases, an auditor mayA. Reduce substantive testing relying on the assessment of inherent risk and control riskB. Postpone the planned timing of substantive tests from interim dates to the year-endC. Eliminate the assessed level of inherent risk from consideration as a planning factor.D. Lower of assessed level of control risk from the maximum level to below the maximum.

49. Analytical procedures are:A. Statistical tests of financial information designed to identify areas requiring intensive

investigationB. Analytical tests of financial information made by a computerC. Evaluation of financial information made by a study of plausible relationships among both

financial and nonfinancial dataD. Diagnostic tests of financial information which may not be classified as evidential matter

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50. Which of the following would not be considered an analytical procedure?A. Estimating payroll expense by multiplying the number of employees by the average hourly

wage rate and the total hours worked.B. Projecting an error rate by comparing the results of statistical sample with the actual

population characteristicsC. Computing accounts receivable turnover by dividing credit sales by the average net

receivablesD. Developing the expected current year sales based on the sales trend of the prior 5 years.

51. As a result of analytical procedures, the independent auditor determines that the gross profit percentage has declined from 30 percent in the preceding year to 20 percent in the current year. The auditor should:A. Include an explanatory paragraph in his audit report indicating the inability of the client

company to continue as a going concernB. Evaluate management’s performance in causing this declineC. Require footnote disclosureD. Consider the possibility of a misstatement in the financial statements

52. Analytical procedures used in planning an audit should focus on identifying:A. Material weaknesses in the internal control structureB. The predictability of financial data from individual transactionsC. The various assertions that are embodied in the financial statementsD. Areas that may represent specific risk relevant to the audit

53. Analytical procedures performed in the overall review stage of an audit suggest several accounts have unexpected relationships. The results of these procedures most likely would indicate thatA. irregularities exist among the relevant account balancesB. Internal control activities are not operating effectivelyC. Additional tests of details are requiredD. The communication with the audit committee should be

54. Which of the following actions should be taken by a CPA who has been asked to examine the financial statements of a company whose fiscal year has ended?A. Discuss with the client the possibility of an adverse opinion because of the late

engagement dateB. Ascertain whether circumstances are likely to permit an adequate examination and

expression of an unqualified opinionC. Inform the client of the need to issue a qualified opinion if the physical inventory has

already been taken

D. Ascertain whether a proper study and evaluation of internal control can be conducted after completion of the field work

55. Which of the following procedures would an auditor normally plan only for a first-time-audit?A. Review litigation against the company that was settled in prior yearsB. Review capital stock transactions from inception of the companyC. Review accounts receivable transactions from inception of the companyD. Review long-term debt repayment in prior years

56. The practice of auditing firms to spread work throughout the year by carrying out as many auditing procedures as practicable before the balance sheet date, in order to minimize the load during the peak period. This is calledA. Test of recorded transactionsB. Confirmation of receivable and payablesC. Observation and test-check of inventoriesD. Interim work

57. At interim dates an auditor evaluates a client’s internal accounting control procedures and finds them to be effective. The auditor then performs a substantial part of the audit engagement on a continuous basis throughout the year. At a minimum, the auditors year-end audit procedures must includeA. Determination that the client’s internal accounting, control procedures are still effective at

year endB. Confirmation of those year-end accounts that were examined at interim dates.C. Test of compliance with internal control in the same manner as those tests made at the

interim datesD. Comparison of the responses to the auditor’s internal control questionnaire with a detailed

flowchart at year end

58. Which item below would not be contained in an audit program?A. List of specific tasks to be performedB. Documentation of system being reviewedC. Staff assigned to the auditD. Estimated time required to perform each task

59. An auditor should design the written program so thatA. All material transactions will be selected for substantive testingB. Substantive tests prior to the balance sheet date will be minimized

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C. The audit procedures selected will achieve specific audit objectivesD. Each account balance will be tested under either tests of controls or tests of transactions

60. In an audit of financial statements, an auditor’s primarily consideration regarding an internal control policy or procedure is whether the policy or procedureA. Reflects management’s philosophy and operating cycle.B. Affects management’s financial statement assertionsC. Provide adequate safeguards over access to assetsD. Enhances management decision-making process

61. When considering the internal control structure, an auditor should be aware of the concept of reasonable assurance, which recognizes thatA. Procedures requiring segregation of duties may be circumvented by employee collusion

and management.B. Establishing and maintaining the internal control structure is an important responsibility of

managementC The cost of an entity’s internal control structure should exceed the benefits expected to be

derived.D. Adequate safeguards over access to assets and records should permit an entity to

maintain proper accountability.

62. Which of the following is not an element of an entity’s internal control structure?A. Control risk C. The accounting systemB. Control procedure D. The control environment

63. Which of the following most likely would not be considered an inherent limitation of the potential effectiveness of an entity’s internal control structureA. incompatible duties C. management overrideB. mistakes in judgment D. collusion among employee

64. Proper segregation of functional responsibilities in an effective structure of internal control calls for separation of the functions ofA. Authorization, execution and payment C. Authorization, payment, and reportingB. Authorization, recording, and custody D. Custody, execution, and reporting

65. The principal purposes in conducting a study and evaluation of existing internal control system is A. For independent audit to maintain a state of independence in mental attitude in all matters

related to the auditB. To assure compliance with GAAPC. To enable independent auditor to assess and be assured of management’s efficiency and

effectiveness

D. To develop an audit plan and determine the nature, timing and extent of audit work required

66. Which of the following is not an auditor should obtain an understanding of the elements of an entity’s internal control structure in planning an audit?A. Identify the types of potential misstatements that can occurB. Design substantive testsC. Consider the operating effectiveness of the internal control structureD. Consider the factors that affect the risks of material misstatements

67. In determining whether transactions have been recorded, the direction of the audit testing should be form theA. General ledger balances C. Adjusted trial balanceB. Original source documents D. General journal entries

68. Which of the following statements is not true regarding the competence of audit evidence?A. Relevance is enhanced by an effective information system.B. To be competent, evidence must be both valid and relevantC. Validity is related to the quality of the client’s information systemD. Relevance must always relate to audit objectives

69. As used in auditing, which of the following statements best describes “assertions”?A. Assertions are the representations of management as to the reliability of the information

systemB. Assertions are the auditor’s findings to be communicated in the audit report.C. Assertions are the representations of management as to the fairness of the financial

statements.D. Assertions are found only in the footnotes to the financial statements.

70. Which of the sets of information does an auditor usually confirm on one form?A. Accounts payable and purchase commitmentsB. Cash in bank and collateral for loansC. Inventory on consignment and contingent liabilitiesD. Accounts receivable and accrued interest receivable

71. Confirmation is most likely to be a relevant form of evidence with regard to assertion about accounts receivable when the auditor has concerns about the receivables’A. Valuation C. Existence

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B. Classification D. Completeness

72. An auditor should perform alternative procedures to substantiate the existence of accounts receivable whenA. No reply to a positive confirmation request is receivedB. No reply to a negative confirmation request is receivedC. Collectibility of the receivables is in doubtD. Pledging of the receivables is probable

73. Which of the following procedures would an auditor most likely perform for year-end accounts receivable confirmations when the auditor did not receive replies to second requests?A. Review the cash receipts journal for the month prior to the year endB. Intensify the study of internal control concerning the revenue cycleC. Increase the assessed level of detectionD. Inspect the shipping records documenting the merchandise sold to the debtors.

74. In auditing accounts receivable, the negative form of confirmation request most likely would be used whenA. The total recorded amount of accounts receivable is immaterial to the financial statements

taken as a whole.B. Response rates in prior years to properly designed positive confirmation requests were

inadequate.C. Recipients are likely to return positive confirmation requests without verifying the accuracy

of the information.D. The combined assessed level of inherent risk and control risk relative to account

receivables is low.

75. An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support management’s financial statement assertion ofA. Valuation or allocation C. Existence or occurrenceB. Rights and obligations D. Presentation and disclosure

76. To gain assurance that all inventory items in a client’s inventory listing schedule are valid, an auditor most likely would traceA. Inventory tags noted during the auditor’s observation to items listed in the inventory listing

scheduleB. Inventory tags noted during the auditor’s observation to items listed in receiving reports

and vendors’ invoices.C. Items listed in the inventory listing schedule to inventory tags and the auditor’s recorded

count sheets.

D. Items listed in receiving reports and vendors’ invoices to the inventory listing schedule.

77. An auditor selected items for test counts while observing a client’s physical inventory. The auditor then traced the test counts tot eh client’s inventory listing. This procedure most likely obtained evidence concerning management’s assertion ofA. Rights and obligations C. Existence or occurrenceB. Completeness D. Valuation

78. An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s assertions aboutA. Existence or occurrence C. Existence or occurrenceB. Completeness D. Valuation

79. In testing long-term investments, an auditor ordinarily would use analytical procedures to ascertain the reasonableness of theA. Completeness of recorded in investment incomeB. Classification between current and noncurrent portfoliosC. Valuation of marketable equity securitiesD. Existence of unrealized gains or losses in the portfolio

80. In testing for unrecorded retirements of equipment, an auditor most likely would A. Select items of equipment from the accounting records and then locate them during the

plant tour.B. Compare depreciation journal entries with similar prior-year entries in search of fully

depreciated equipmentC. Inspect items of equipment observed during the plant tour and then trace them to the

equipment subsidiary ledger.D. Scan the general journal for unusual equipment additions and excessive debits to repairs

and maintenance expense.

81. An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that allA. Noncapitalizable expenditures for repairs and maintenance have been recorded in the

proper period.B. Expenditures for property and equipment have been recorded in the proper period.C. Noncapitalizable expenditures for repairs and maintenance have been properly charged to

expense.D. Expenditures for property and equipment have not been charged to expense.

82. Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities?

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A. Trace a sample of accounts payable entries recorded just before year end to the unmatched receiving report file.

B. Compare a sample of purchase orders issued just after year end with the year-end accounts payable trial balance.

C. Vouch a sample of cash disbursements recorded after year end to receiving reports and vendor invoices.

D. Scan the cash disbursement entries recorded just before year end for indications of unusual transactions

83. Auditor confirmation of accounts payable balances at the balance sheet data may be unnecessary becauseA. This is a duplication of cutoff tests.B. Accounts payable balances at the balance sheet data may not be paid before the audit is

completed.C. Correspondence with the audit client’s attorney will reveal all legal action by vendors for

nonpayment.D. There is likely to be other reliable external evidence to support the balance.

84. In auditing accounts payable, an auditor’s procedure most likely would focus primarily on management’s assertion ofA. Existence or occurrence C. CompletenessB. Presentation and disclosure D. Valuation or allocation

85. When a CPA observes that the recorded interest expense seems to be excessive in relation to the balance in the bonds payable account, the CPA might suspects thatA. Discounts on bonds payable is understatedB. Bonds payable are understatedC. Bonds payable are overstatedD. Premium on bonds payable are overstated.

86. An audit program for the examination of the retained earnings account should include a step that requires verification of theA. Market value used to charge retained earnings to account for a two-for-one stock split.B. Approval of the adjustment to the beginning balance as a result of a write-down of an

account receivableC. Authorization for both cash and stock dividendsD. Gain or loss resulting from disposition of treasury shares

87. Which of the following most likely would be detected by an auditor’s review of a client’s sales cutoff?

A. Shipments lacking sales invoices and shipping documentsB. Excessive write-offs of accounts receivableC. Unrecorded sales at year endD. Lapping of year-end accounts receivable

88. A limitation on the scope of the auditor’s examination sufficient to preclude an unqualified opinion will always result when managementA. Prevents the auditor from reviewing the working papers of the predecessor auditor.B. Engages the auditor after the year-end physical inventory count is completedC. Fails to correct a reportable condition of internal control that had been identified during the

prior year’s audit.D. Refuses to furnish a management representation letter to the auditor.

89. A purpose of a management representation letter is to reduceA. Audit risk to an aggregate level of misstatement that could be considered materialB. An auditor’s responsibility to detect material misstatements only to the extent that the

letter is relied on.C. The possibility of a misunderstanding concerning management’s responsibility for the

financial statements.D. The scope of an auditor’s procedures concerning related-party transactions and

subsequent events.

90. Which of the following is not a specialist upon whose work an auditor may rely?A. Actuary C. Internal auditorB. Appraiser D. Engineer

91. To maximize independence, the director of internal auditing should report to the A. Audit committee C. Chief financial officerB. Controller D. Director of information systems

92. The primary reason an auditor requests letters of inquiry be sent to a client’s attorneys is to provide the auditor withA. The probable outcome of asserted claims and pending or threatened litigation.B. Corroboration of the information furnished by management about litigation, claims and

assessments.C. The attorneys’ opinions of the client’s historical experience in recent similar litigation.D. A description and evaluation of litigation, claims, and assessments that existed at the

balance sheet date.

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93. A CPA has received an attorney’s letter in which no significant disagreements with the client’s assessments of contingent liabilities were noted. The resignation of the client’s lawyer shortly after receipt of the letter should alert the auditor that A. Undisclosed unasserted claims may have arisenB. The attorney was unable to form a conclusion with respect to the significance of litigation,

claims, and assessments.C. The auditor must begin a completely new examination of contingent liabilities.D. An adverse opinion will be necessary.

94. Cooper, CPA, believes there is a substantial doubt about the ability of Zero Corp. to continue as a going concern for a reasonable period of time. In evaluation Zero’s plans for dealing with the adverse effects of future conditions and events. Cooper most likely would consider, as a mitigating factor, Zero’s plans toA. Discuss with lenders the terms of all debt and loan agreements.B. Strengthen controls over cash disbursements.C. Purchase production facilities currently being leased from a related party.D. Postpone expenditures for research and development projects.

95. Which of the following audit procedures would most likely assist an auditor in identifying conditions and events that may indicate there could be substantial doubt about an entity’s ability to continue as going concern?A. Review compliance with the terms of debt agreements.B. Confirmation of accounts receivable from principal customers.C. Reconciliation of interest expense with debt outstanding.D. Confirmation of bank balances.

96. When considering the use of management’s written representations as audit evidence about the completeness assertion, an auditor should understand that such representationsA. Complement, but do not replace, substantive tests designed to support the assertionB. Constitute sufficient evidence to support the assertion when considered in combination

with reliance on internal control.C. Are not part of the evidential matter considered to support the assertion.D. Replace reliance on internal control as evidence to support the assertion.

97. To which of the following matters would materiality limits not apply in obtaining written management representations?A. The availability of minutes of stockholders’ and director’s meetings.B. Losses from purchase commitments at prices in excess of market value.C. The disclosure of compensating balance arrangements involving related parties.D. Reductions of obsolete inventory to net realizable value.

98. The date of the management representation letter should coincide with the date of the

A. Balance sheet C. Auditor’s reportB. Latest interim financial information D. Latest related-party transactions

99. Which of the following matters would an auditor most likely include in a management representation letter?A. Communications with the audit committee concerning weaknesses in internal control.B. The completeness and availability of minutes of stockholders’ and directors’ meetingsC. Plans to acquire or merge with other entities in the subsequent yearD. Management’s acknowledgment of its responsibility for detection of employee fraud.

100. Which of the following pairs of accounts would an auditor most likely analyze on the same working paper?A. Notes receivable and interest incomeB. Accrued interest receivable and accrued interest payable.C. Notes payable and notes receivableD. Interest income and interest expense

101. An auditor’s working papers serve mainly toA. Provide the principal support for the auditor’s reportB. Satisfy the auditor’s responsibilities concerning the Code of Professional ConductC. Monitor the effectiveness of the CPA firm’s quality control proceduresD. Document the level of independence maintained by the auditor

102. The permanent file of an auditor’s working papers generally would not includeA. Bond indenture agreements C. Lease agreementsB. Working trial balance D. Flowchart of internal control

103. An auditor ordinarily uses a working trial balance resembling the financial statements without footnotes, but containing columns forA. Cash flow increases and decreases C. Reclassifications and adjustmentsB. Audit objectives and assertions D. Reconciliations and tickmarks

104. Which of the following factors would least likely affect the quantity and content of an auditor’s working papers?A. The condition of the client’s records. C. The nature of the auditor’s reportB. The assessed level of control risk D. The content of the representation letter

105. Which of the following is required documentation in an audit in accordance with generally accepted auditing standards?A. A flowchart or narrative of the accounting system describing the recording and

classification of transactions for financial reporting.

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B. An audit program setting forth in detail the procedures necessary to accomplish the engagement’s objectives.

C. A planning memorandum establishing the timing of the audit procedures and coordinating the assistance of entity personnel.

D. An internal control questionnaire identifying controls that assure specific objectives will be achieved.

106. Which of the following procedures should an auditor generally perform regarding subsequent events?A. Compare the latest available interim financial statements with the financial statements

being audited.B. Send second requests to the client’s customers who failed to respond to initial accounts

receivable confirmation requests.C. Communicate material weaknesses in internal control to the client’s audit committee.D. Review the cutoff bank statements for several months after the year end

107. Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?A. Culmination of events affecting the realization value of accounts receivable owned as of

the balance sheet date.B. Culmination of events affecting the realization of inventories owned as of the balance

sheet date.C. Material changes in the settlement of liabilities which were estimated as of the balance

sheet date.D. Material changes in the quoted market prices of listed investment securities since the

balance sheet date.

108. Zero Corp. suffered a loss that would have a material effect on its financial statements on an uncollectible trade account receivable due to a customer’s bankruptcy. This occurred suddenly due to a natural disaster 10 days after Zero’s balance sheet date, but 1 month before the issuance of the financial statements and the auditor’s report. Under these circumstances.

The financial statements

should be adjusted

The event requires financial statement disclosure but no

adjustment

The auditor’s report should be modified for a

lack of consistencyA. Yes No NoB. Yes No YesC. No Yes YesD. NO Yes No

109.Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?A. An analysis of related party transactions for the discovery of possible fraud.B. A review of the cut-off bank statements for the period after the year-endC. An inquiry of the client’s legal counsel concerning litigation.D. An investigation of material weaknesses in internal control previously communicated to

the client.

110.Which of the following events occurring after the issuance of an auditor’s report most likely would cause the auditor to make further inquiries about the previously issued financial statements?A. An uninsured natural disaster occurs that may affect the entity’s ability to continue as a

going concern.B. A contingency is resolved that had been disclosed in the audited financial statements.C. New information is discovered concerning undisclosed lease transactions of the audited

period.D. A subsidiary is sold that accounts for 25% of the entity’s consolidated net income.

111. Six months after issuing an unqualified opinion on audited financial statements, an auditor discovered that the engagement personnel failed to confirm several of the client’s material accounts receivable balances. The auditor should firstA. Request the permission of the client to undertake the confirmation of accounts receivable.B. Perform alternative procedures to provide a satisfactory basis for the unqualified opinion.C. Assess the importance of the omitted procedures to the auditor’s ability to support the

previously expressed opinion.D. Inquire whether there are persons currently relying, or likely to rely, on the unqualified

opinion.

112. On March 15, 1998, Kent, CPA, issued an unqualified opinion on a client’s audited financial statements for the year ended December 31, 1997. On May 4, 1998, Kent’s internal inspection program disclosed that engagement personnel failed to observe the client’s physical inventory. Omission of this procedure impairs Kent’s present ability to support the unqualified opinion. If the stockholders are currently relying on the opinion, Kent should firstA. Advise management to disclose to the stockholders that Kent’s unqualified opinion should

not be relied on.B. Undertake to apply alternative procedures that would provide a satisfactory basis for the

unqualified opinion.C. Reissue the auditor’s report and add an explanatory paragraph describing the departure

from generally accepted auditing standards.

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D. Compensate for the omitted procedure by performing tests of controls to reduce audit risk to a sufficiently low level.

113. An audit report contains the following paragraph: “Because of the inadequacies in the company’s accounting records during the year ended June 30, 2003, it was not practicable to extend our auditing procedures to the extent necessary to enable us to obtain certain evidential matter as it relates to classification of certain items in the consolidated statements of operations.”This paragraph most likely describesA. A material departure from GAAP requiring a qualified audit opinion.B. An uncertainty that should not lead to a qualified opinion.C. A matter that the auditor wishes to emphasize and that does not lead to a qualified audit

opinion.D. A material scope restriction requiring a qualification of the audit opinion.

114. The auditor issued a qualified opinion covering the financial statements of Client A for the year ended December 31, 2002. The reason for the qualification was a departure from GAAP. In presenting comparative statements for the years ended December 31, 2002 and 2003, the client revised the 2002 financial statements to correct the previous departure from GAAP. The auditor’s 2003 report on the 12/31/02 and 12/31/03 comparative financial statements willA. Express a qualified opinion on the 2002 financial statements and an unqualified opinion

on the 2003 statements.B. Express unqualified opinions on both the 2002 and 2003 financial statements.C. Retain the qualified opinion covering the 2002 statements, but add an explanatory

paragraph describing the correction of the prior departure from GAAP. D. Render qualified audit opinions for both 2002 and 2003 financial statements given the

2003 carryover effect of the 2002 error.

115. Restriction imposed by a client prohibits the observation of physical inventories, which account for 35% of all assets. Alternative audit procedures cannot be applied, although the auditor was able to examine satisfactory evidence for all other items in the financial statements. The auditor should issue a (n)A. “Except for” qualified opinionB. Disclaimer of opinionC. Unqualified opinion with a separate explanatory paragraphD. Unqualified opinion with an explanation in the scope paragraph.

116. Under which of the following circumstances would a disclaimer of opinion not be appropriate?A. The auditor is engaged after fiscal year-end and is unable to observe physical inventories

or apply alternative procedures to verify their balances.

B. The auditor is unable to determine the amounts associated with illegal acts committed by the client’s management.

C. The financial statements fail to contain adequate disclosure concerning related party transactions.

D. The client refuses to permit its attorney to furnish information requested in a letter of audit inquiry.

117. An auditor’s report would be designated as a special report when it is issued in connection with financial statements that are

A. For an interim period and are subjected to a limited reviewB. Unaudited and are prepared from a client’s accounting records.C. Prepared in accordance with a comprehensive basis of accounting other than generally

accepted accounting principles.D. Purported to be in accordance with generally accepted accounting principles but do not

include a presentation of the Statement of Cash Flows.

118. An auditor concludes that there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. If the entity’s disclosures concerning this matter are not adequate, the audit report may include a (an)

A. B. C. D.Disclaimer of opinion Yes No No Yes“Except for” Qualified opinion Yes No Yes No

119.Under which of the following circumstances would an unqualified audit opinion followed by an explanatory paragraph not be appropriate?A. The auditor wishes to emphasize that the client has entered into material transactions with

related parties. The substance of the related party transactions is properly disclosed in the audited financial statements.

B. The client has completed material transactions with related parties and the auditor is unable to persuade management to properly reflect the economic substance of the transactions in the financial statements.

C. The client has used a method of revenue recognition that is at variance with promulgated accounting standards. The auditor, however, agrees with the departure on the basis that use of the promulgated standard would make the financial statements materially misleading.

D. The auditor believes that substantial doubt exists concerning the ability of the client to continue as a going concern.

120. An audit report contains the following paragraph: “Since the company did not take physical inventories and we were not able to apply auditing procedures to satisfy ourselves as to inventory quantities and the cost of property and equipment, the scope of our work was not

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sufficient to enable us to express, and we do not express, an opinion on these financial statements.” This paragraph illustrates a (an)A. Disclaimer of opinion due to uncertaintyB. Disclaimer of opinion due to scope restrictionsC. Adverse audit opinionD. Audit opinion qualified for material scope restrictions.

121. When a principal auditor decides to make reference to another auditor’s examination, the principal auditor’s report should always indicate clearly, in the introductory, scope, and opinion paragraphs, theA. Magnitude of the portion of the financial statements examined by the other auditor.B. Disclaimer of responsibility concerning the portion of the financial statements examined by

the other auditor.C. Name of the other auditor.D. Division of responsibility.

122. In which of the following circumstances may the auditor issue the standard audit report?A. The principal auditor assumes responsibility for the work of another auditor.B. The financial statements are affected by a departure from a generally accepted

accounting principle.C. Substantial doubt exists concerning the ability of the entity to continue as a going concern.D. The auditor wishes to emphasize a matter regarding the financial statements.

123. An auditor should disclose the substantive reasons for expressing an adverse opinion in an explanatory paragraphA. Preceding the scope paragraphB. Preceding the opinion paragraphC. Following the opinion paragraphD. Within the notes of the financial statements.

124. Which of the following statements is correct concerning both an engagement to compile and an engagement to review a nonpublic entity’s financial statements?A. The accountant does not contemplate obtaining an understanding of internal control.B. The accountant must be independent in fact and appearance.C. The accountant expresses no assurance on the financial statements.D. The accountant should obtain a written management representation letter.

125. When providing limited assurance that the financial statements of a nonpublic entity require no material modifications to be in accordance with generally accepted accounting principles, the accountant should

A. Assess the risk that a material misstatement could occur in a financial statement assertion.

B. Confirm with the entity’s lawyer that material loss contingencies are disclosed.C. Understand the accounting principles of the industry in which the entity operates.D. Develop audit programs to determine whether the entity’s financial statements are fairly

presented.126. Which of the following procedures would an accountant least likely perform during an

engagement to review the financial statements of a nonpublic entity?A. Observing the safeguards over access to and use of assets and records.B. Comparing the financial statements with anticipated results in budgets and forecasts.C. Inquiring of management about actions taken at the board of directors’ meetings.D. Studying the relationships of financial statement elements expected to conform to

predictable patterns.

127. Of the following statements, which best distinguishes ordinary negligence from gross negligence?A. Failure to detect material errors, whether internal control is strong or weak, suggests

gross negligence.B. Failure to exercise reasonable care denotes ordinary negligence, whereas failure to

exercise minimal care indicates gross negligence.C. Gross negligence is most probable when the auditor fails to detect errors that occurred

under conditions of strong internal control.D. The more material the undetected error the greater the likelihood of ordinary negligence.

128. Which of the following is not an example of analytical evidence?A. Compared inventory turnover by major class with the prior year on a monthly and

quarterly basis.B. Compared gross profit percentages by major product classes with the prior year.C. Examined invoices for plant asset additions to determine whether the client had

erroneously recorded ordinary repairs as plant assets.D. Examined monthly performance reports and investigated significant variations from

budgeted amounts.

129. Which of the following is a basic tool used by the auditor to control the audit work and review the progress of the audit?A. Time and expense summary C. Progress flowchartB. Engagement letter D. Audit program

130. Of the following audit procedures, which best supports the valuation objective?A. Performing a lower of cost or market test of the client’s inventories.B. Reviewing a contingent liability footnote for proper wording.

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C. Searching for unrecorded liabilities.D. Observing the client’s year-end physical inventory taking.

131.Which of the following factors in most important in determining the competence of audit evidence?A. The reliability of the evidence in meeting the audit objective.B. The objectivity of the auditor gathering the evidence.C. The quantity of the evidence obtained.D. The independence of the source of evidence.

132. When reviewing audit working papers, the primary responsibility of an audit supervisor is to determine that:

A. Each worksheet is properly identified with a descriptive heading.B. Working papers are properly referenced and kept in logical groupings.C. Standard departmental procedures are adhered to with regard to work paper preparation

and technique.D. Working papers adequately support the audit findings, conclusion, and report.

133. The main advantage of properly indexed working papers is toA. Reduce the size of the fileB. Better organize the working papersC. Allow division of labor within the audit teamD. Facilitate the efficient use of audit staff.

134. Which of the following is not an example of confirmation evidence?A. Requesting the client’s outside legal counsel to evaluate the possible outcome of pending

litigation.B. Questioning the client’s employees about existing internal control policies and procedures.C. Requesting the client’s customers to verify year-end accounts receivable balances.D. Requesting payees to respond in writing to the terms contained in notes payable

appearing in the client’s ledger.

135. The principal reason for developing a written audit program is to help assure that the A. Audit work is properly supervisedB. Audit work is properly planned and documentedC. Audit report contains only significant findings.D. Work of different auditors is properly coordinated.

136. Audit information is generally considered relevant when it is:A. Derived through valid statistical sampling.B. Objective and unbiased

C. Factual, adequate, and convincingD. Consistent with the audit objectives

137. External auditors often confirm assertions contained in the organization’s financial statements and accounting records with third parties. Which of the following best explains why confirmation produces evidence of high quality?A. Written assertions from knowledgeable third parties provide sufficient evidence to achieve

most audit objectives.B. Confirmation by knowledgeable third parties is usually the most relevant evidence

available.C. Confirmation by knowledgeable third parties is usually the least costly evidence available.D. Confirmation by knowledgeable third parties is highly competent because of its

independent source.

138. Having evaluated inherent risk and control risk, the auditor determines detection riskA. As the complement of overall audit risk.B. By performing substantive audit tests.C. As a product of further study of the business and industry and application of analytical

proceduresD. At a level equates the joint probability of inherent risk, control risk, and detection risk with

overall audit risk.

139. Which of the following is not a purpose served by the application of analytical procedures?A. As part of audit planning to assist in locating significant changes in revenues and

expenses.B. To provide a basis for lowering materiality thresholds where significant earnings inflation is

indicated.C. To determine the economic substance of related party transactions.D. As part of audit review to determine that all significant abnormalities have been resolved

to the auditor’s satisfaction.

140. Which of the following is not a component of audit planning?A. Observing the client’s annual physical inventory taking and making test counts of selected

items.B. Making arrangements with the client concerning the timing of audit field work and use of

the client’s staff in completing certain phases of the examination.C. Obtaining an understanding of the business.D. Developing audit programs.

141. Audit risk consists of all but the following components:A. Inherent risk C. Substantive riskB. Detection risk D. Control risk

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142. Which of the following conditions supports an increase in detection risk?A. Internal control over cash receipts is excellent.B. Application of analytical procedures reveals a significant increase in sales revenue in

December, the last month of the fiscal year.C. Internal control over shipping, billing, and recording of sales revenue is weak.D. Study of the business reveals that the client recently acquired a new company in an

unrelated industry.

143. Why should the auditor plan more work on individual accounts as lower acceptable levels of both audit risk and materiality are established?A. To find smaller errors.B. To find larger errors.C. To increase the tolerable error in the accountsD. To decrease the risk of overreliance.

144. The risk of fraudulent financial reporting increases in the presence ofA. Incentive system based on operating incomeB. Improved control systemsC. Substantial increases in salesD. Frequent changes in suppliers.

145. The most effective control to prevent unbilled and unrecorded shipments of finished goods is to

A. Require all outgoing shipments to be accompanied by a prenumbered shipping order and bill of lading (signed by the carrier). Forward a copy of these documents to accounting, to be placed in an open file awaiting receipt of the customer invoice copy.

B. Forward a copy of the shipping order and bill of lading to billing.C. Implement a policy that prevents sales invoices from being mailed to customers in the

absence of a properly approved shipping order and bill of lading signed by the carrier.D. Forward a copy of the signed bill of lading to the stores manager.

146. Which of the following, if material, would be considered fraud?A. Mistakes in the application of accounting principles.B. Clerical mistakes in the accounting data underlying the financial statements.C. Misappropriation of an asset or groups of assets.D. Misinterpretations of facts that existed when the financial statements were prepared.

147. Proper segregation of functional responsibilities calls for the separation of theA. Authorization, recording, and custodial functionsB. Authorization, execution and payment functions

C. Receiving, shipping and custodial functionsD. Authorization, approval and execution functions.

148. For good internal control, which of the following functions should not be the responsibility of the treasurer’s department?

A. Data processing C. Custody of securitiesB. Handling of cash D. Establishing credit policies

149.For effective internal control, the accounts payable department should compare the information on each vendor’s invoice with theA. Receiving report and the purchase order.B. Receiving report and the voucherC. Vendor’s packing slip and the purchase orderD. Vendor’s packing slip and the voucher

150.Which of the following is an internal control procedure that would prevent a paid disbursement voucher from being presented for payment a second time?A. Vouchers should be prepared by individuals who are responsible for signing disbursement

checks.B. Disbursement vouchers should be approved by at least two responsible management

officials.C. The date on a disbursement voucher should be within a few days of the date the voucher

is presented for payment.D. The official signing the check should cancel the paid voucher after examining the

documentation supporting the disbursement.

151. Which of the following control procedures would most likely be used to maintain accurate perpetual inventory records?A. Independent storeroom count of goods received.B. Periodic independent reconciliation of control and subsidiary records.C. Periodic independent comparison of records with goods on hand.D. Independent matching of purchase orders, receiving reports, and vendors’ invoices.

152. After the study and evaluation of a client’s internal control policies and procedures has been completed, an auditor might decide toA. Increase the extent of substantive testing in areas where the internal control policies and

procedures are strong.B. Reduce the extent of control testing in areas where the internal control policies and

procedures are strong.C. Reduce the extent of both substantive and control testing in areas where the internal

control policies and procedures are strong.D. Increase the extent of substantive testing in areas where the internal controls are weak.

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153. If the independent auditors decide that the work performed by the internal auditor may have a bearing on their own procedures, they should consider the internal auditor’sA. competence and objectivity C. independence and review skillsB. efficiency and experience D. training and supervisory skills

154.Regardless of whether the auditor decides to test controls for operating effectiveness, he/she must fully document his or her understanding of the internal control policies and procedures obtained through whatever means. Which of the following does not describe an appropriate means for documenting such understanding?A. internal control flowchart C. internal control memorandumB. internal control implementation D. internal control questionnaire

155. Which of the following is not an auditing procedure that is commonly used in performing control tests?A. inquiring C. confirmingB. observing D. inspecting

156. It is important for the CPA to consider the competence of the audit client’s employees because their competence bears directly and importantly upon theA. cost/benefit relationship of the internal control system.B. achievement of the objectives of the internal control systemC. comparison of recorded accountability with assetsD. timing of the tests to be performed

157. The possibility of losing a large amount of information stored in computer files most likely would be reduced by the use ofA. back-up files C. completeness testsB. check digits D. conversion verification

158.An integrated test facility (ITF) would be appropriate when the auditor needs toA. Trace a complex logic path through an application system.B. Verify processing accuracy concurrently with processingC. Monitor transactions in an application system continuouslyD. Verify load module integrity for production programs

159. When auditing “around” the computer, the independent auditor focuses solely upon the source documents andA. test data C. processingB. control techniques D. output

160. Which of the following methods of testing application controls utilizes a generalized audit software package prepared by the auditors?A. parallel simulation C. integrated testing facility approachB. test data approach D. exception report tests

161. An unauthorized employee took computer printouts from output bins accessible to all employees. A control which would have prevented this occurrence isA. A storage/ retention control C. a spooler file controlB. an output review control D. a report distribution control

162. A hash total of employee numbers is part of the input to a payroll master file update program. The program compares the hash total to the total computed for transactions applied to the master file. The purpose of this procedure is to:A. Verify that employee numbers are validB. Verify that only authorized employees are paidC. Detect errors in payroll calculationsD. Detect the omission of transaction processing

163. Which of the following is a disadvantage of the integrated test facility approach?A. In establishing fictitious entities, the auditor may be compromising audit independence.B. Removing the fictitious transactions from the system is somewhat difficult and, if not done

carefully, may contaminate the client’s files.C. ITF is simply an automated version of auditing “around” the computerD. The auditor may not always have a current copy of the authorized version of the client’s

program

164. An account payable program posted a payable to a vendor not included in the on-line vendor master file. A control which would prevent this error is a A. validity check C. range checkB. reasonableness test D. parity check

165. While entering data into a cash receipts transaction file, an employee transposed two numbers in a customer code. Which of the following controls could prevent input of this type of error?A. sequence check C. record checkB. self-checking digit D. field-size check

166. Auditors who prefer statistical sampling to non-statistical sampling may do so because statistical sampling helps the auditorA. Measure the sufficiency of the evidential matter obtainedB. Eliminate subjectivity in the evaluation of sampling results

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C. Reduce the level of tolerable error to a relatively low amount.

167. Of the following statements, which one best differentiates statistical sampling from nonstatistical sampling?A. Statistical sampling is a mathematical approach to inference, whereas nonstatistical

sampling is a more subjective approach.B. Nonstatistical sampling has greater applicability to large populations than does statistical

sampling.C. Nonstatistical sampling is more subjective, but produces greater consistency in the

application of audit judgment.D. Nonstatistical sampling has greater applicability to populations that lend themselves to

random selection.

168. Which of the following sampling methods is most useful to auditors when testing for internal control effectiveness?A. Stratified random samplingB. Variables samplingC. Attribute samplingD. Unrestricted random sampling with replacement

169. In the examination of the financial statements of Delta Company, the auditor determines that in performing a test of internal control effectiveness, the rate of error in the sample does not support the auditor’s preconceived notion of a tolerable occurrence rate when, in fact, the actual error rate in the population does meet the auditor’s notion of effectiveness. This situation illustrates the risk ofA. Underassessment of control risk C. Overassessment of control riskB. Incorrect rejection D. Incorrect acceptance

170. Which of the following factors is generally not considered in determining the sample size for a test of controls?A. Population size C. Tolerable rateB. Risk of underassessment D. Expected population occurrence rate.

171. Sampling risk refers to the possibility that:A. The auditor may use a less than optimal statistical method for the circumstances, e.g.

difference estimation instead of ration estimation.B. The auditor may fail to recognize an error that is included in the sample.C. Even thought a sample is properly chosen it may not be representative of the population.D. The confidence level and/or precision established by the auditor are not appropriate.

172. In conducting a substantive test of an account balance, an auditor hypothesizes that no material error exists. The risk that sample results will support the hypothesis when a material error actually does exist is the risk ofA. Incorrect rejection C. Alpha errorB. Incorrect acceptance D. Type I error

173. The risk of incorrect acceptance and the likelihood of assessing control risk too low relate to the A. Effectiveness of an audit C. Preliminary estimates of materiality levelsB. Efficiency of the audit D. Allowable risk of tolerable error

174. Which of the following sampling plans would be designed to estimate a numerical measurement of a population such as a peso value?A. Discovery sampling C. Numerical samplingB. Sampling for variables D. Sampling for attributes

175. A population that is physically separated into two or more groups based on the sample variation being less than that for the entire population is called aA. Systematic sample C. Judgment sampleB. Simple random sample D. Stratified sample

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Answer Key1. 31. 61. 91. 121. 151. 2. 32. 62. 92. 122. 152. 3. 33. 63. 93. 123. 153. 4. 34. 64. 94. 124. 154. 5. 35. 65. 95. 125. 155. 6. 36. 66. 96. 126. 156. 7. 37. 67. 97. 127. 157. 8. 38. 68. 98. 128. 158. 9. 39. 69. 99. 129. 159. 10. 40. 70. 100. 130. 160. 11. 41. 71. 101. 131. 161. 12. 42. 72. 102. 132. 162. 13. 43. 73. 103. 133. 163. 14. 44. 74. 104. 134. 164. 15. 45. 75. 105. 135. 165. 16. 46. 76. 106. 136. 166. 17. 47. 77. 107. 137. 167. 18. 48. 78. 108. 138. 168. 19. 49. 79. 109. 139. 169. 20. 50. 80. 110. 140. 170. 21. 51. 81. 111. 141. 171. 22. 52. 82. 112. 142. 172. 23. 53. 83. 113. 143. 173. 24. 54. 84. 114. 144. 174. 25. 55. 85. 115. 145. 175. 26. 56. 86. 116. 146. 27. 57. 87. 117. 147. 28. 58. 88. 118. 148. 29. 59. 89. 119. 149. 30. 60. 90. 120. 150.

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