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If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate?
If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate?A . Attributes sampling.B . Probability-proportional-to-size sampling.C . Difference estimation sampling.D . Discovery sampling.View AnswerAnswer: C
Which of the following audit tools would be best suited to review the access information that has been recorded?
Access control software on an organization's mainframe computer records detailed information concerning both successful and unsuccessful log-on attempts to applications. Which of the following audit tools would be best suited to review the access information that has been recorded?A . Generalized audit software.B . Flowcharting.C . Integrated test facility.D ....
Which of the following changes would most improve the auditor's workpaper?
An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement: “A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.”...
In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the.
In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the.A . Population.B . Attribute of interest.C . Sample.D . Sampling unit.View AnswerAnswer: A
Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?
Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?A . Checks are not restrictively endorsed when received.B . Only one signature is required on the organization's checks.C . One employee handles both accounts receivable and purchase orders.D . One...
Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?
Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?A . The standard of living of one of the purchasing agents has increased.B . The internal control structure has significant weaknesses.C . The purchasing agents have...
Which of the following is true regarding the workpaper?
The following is an excerpt from an audit engagement workpaper: ✑ A Company ✑ Accounts Receivable ✑ Date Objective. To determine if the computer system is correctly recording all accounts receivable transactions. Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of...
In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:
In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:A . Activities and cost drivers.B . Information processing procedures.C . Current product cost structures.D . Internal control alternatives.View...
Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?
Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?A . Pre-numbered customer invoices.B . Accounts receivable transactions.C . Pre-numbered shipping documents.D . Customer purchase orders.View AnswerAnswer: C
Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?
During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?A . Issue an exception report.B . Pay the amount billed and adjust the...
