Audit Testing and Sampling Methodologies AAIA Practice Questions (Page 7)

Questions 31–34

1. 31foundation · easy

   What should be documented in the audit workpapers regarding sampling procedures?

   • AThe sampling objectives, methodology, selection process, and conclusions
   • BThe names of the audit team members and the time spent on sampling
   • COnly the final conclusion and the sample size
   • DThe results of the sample and the auditor's personal opinions
   Reveal Solution Discussion Select an answer first
2. 32foundation · easy

   When applying traditional sampling methodologies to AI systems, what unique risk must auditors consider?

   • AThe risk that the auditor cannot use statistical sampling
   • BThe risk of sampling error is eliminated because AI systems are deterministic
   • CThe risk of model bias in the population being sampled
   • DThe risk that the sample size is too large to be practical
   Reveal Solution Discussion Select an answer first
4. 33application · medium

   An AI auditor is planning to test the accuracy of a fraud-detection model. The population consists of 2 million transactions. The auditor has a team of 3 reviewers and a deadline of 2 weeks. The auditor must decide between 100% examination and sampling. Which factor MOST strongly supports the use of sampling over 100% examination?

   • AThe population is too large to examine within the time and resource constraints.
   • BThe model is known to be highly accurate, so a small sample is sufficient.
   • CThe auditor wants to eliminate all risk of incorrect conclusions.
   • DThe auditor wants to identify every single misclassified transaction.
   Reveal Solution Discussion Select an answer first
5. 34application · medium

   An auditor is using variables sampling to estimate the total dollar amount of misstatement in an AI-generated inventory valuation. The population has 15,000 items with a total book value of $3,000,000. The auditor selects a sample, finds a total misstatement of $12,000 in the sample, and the sample's book value is $150,000. What is the projected misstatement for the entire population?

   • A$24,000
   • B$240,000
   • C$1,200,000
   • D$120,000
   Reveal Solution Discussion Select an answer first