Answers to Review Questions

1. A. The compliance test uses precision to describe the rate of occurrence out of the sample population. The compliance testing uses precision to describe the expected error rate of the sample compared to total population. Precision is usually expressed as a percentage.

2. D. Risk analysis is used to determine whether the audit has any chance of representing the truth. Nothing in the realm of IS auditing is absolute because of the abstract nature of technology implementations.

3. B. A detection risk is that you would fail to detect that a material error has occurred.

4. D. Difference estimation, stratified mean, and unstratified mean are valid sample types for substantive testing. Qualitative estimation is just a distractor.