Reference no: EM132698089

Problem 1: The final step in the evaluation of the audit sample results is the decision to determine the acceptability of the population. Which of the following statements is false?

Option 1: This step is necessary when conducting any sample.

Option 2: When performing compliance testing, the auditor will need to conclude if the control is effective for the entire period of the audit.

Option 3: When performing substantive testing, the auditor will need to conclude if the account is materially misstated.

Option 4: This step is not necessary when conducting a judgemental sample.

Problem 2: Henry requested confirmations from a sample of all accounts receivable that was over 90 days old. Any monetary error found should be extrapolated to the population of:

Option 1: all past due accounts receivable

Option 2: accounts receivable over 90 days old

Option 3: all accounts receivable

Option 4: current account receivable