Audit Testing and Sampling Methodologies AAIA Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   An auditor is testing the accuracy of an AI system that calculates insurance claim payouts. The population of 20,000 claims has a highly skewed distribution: 90% of claims are under $1,000, and 10% are over $10,000. The auditor wants to estimate the total dollar misstatement in the population. Which approach would most improve the efficiency and effectiveness of the sampling?

   • AUse haphazard selection, choosing 100 claims that the auditor believes are representative.
   • BUse block selection, selecting all claims from the first 1,000 processed this month.
   • CUse stratified sampling, dividing the population into low-value and high-value strata and sampling more heavily from the high-value stratum.
   • DUse simple random sampling of 100 claims from the entire population.
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2. 22expert · hard

   An auditor is using monetary unit sampling (MUS) to test for overstatement in an AI-generated accounts receivable balance. The population has a book value of $2,000,000. The auditor selects a sample and finds the following misstatements: a $500 overstatement on an item with a book value of $1,000, and a $1,500 overstatement on an item with a book value of $5,000. What is the total projected misstatement using the ratio of misstatement to book value for each item?

   • A$800,000
   • B$1,600,000
   • C$2,000
   • D$1,000,000
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4. 23application · medium

   An AI auditor has completed a sampling procedure to test the accuracy of a chatbot's responses. The auditor used a random sample of 500 interactions, found 25 errors, and projected a 5% error rate to the population. The audit file must be reviewed by a second partner. What documentation is MOST critical for the reviewer to understand the basis for the auditor's conclusion?

   • AThe sampling objective, the definition of the population, the sample selection method, and the method used to project errors.
   • BThe names and contact information of the developers of the chatbot.
   • CA list of all 500 sampled interactions with the auditor's notes on each one.
   • DThe total number of interactions the chatbot processed during the audit period.
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5. 24foundation · easy

   What is variables sampling used for?

   • AEstimating the monetary amount of misstatement in an account balance
   • BDetermining the sample size for attribute sampling
   • CEstimating the rate of deviation from a control
   • DSelecting a sample of items for testing controls
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6. 25application · medium

   An auditor performed attribute sampling to test an AI-driven access-control control. The auditor selected 150 items and found 6 deviations. The tolerable deviation rate was set at 5%, and the computed upper deviation rate (CUDR) was 6.2%. What is the auditor's most appropriate conclusion?

   • AThe auditor should expand the sample before drawing any conclusion.
   • BThe control is not effective because the computed upper deviation rate (6.2%) exceeds the tolerable deviation rate of 5%.
   • CThe control is effective because the actual deviation rate in the sample (4%) is below the tolerable rate of 5%.
   • DThe control is effective because the sample size was large enough to provide sufficient assurance.
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