Which of the Following Courses of Action Is an Auditor

question 29

Multiple Choice

Which of the following courses of action is an auditor most likely to follow in designing a sampling plan for cash disbursements if the auditor is aware of several unusually large cash disbursements?

• A)Increase the sample size to reduce the effect of the unusually large disbursements.
• B)Continue to draw new samples until all the unusually large disbursements are included in the sample.
• C)Set the tolerable deviation rate at a lower level than originally planned.
• D)Stratify the cash disbursements population so that all of the unusually large disbursements are selected.

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Definitions:

Air Embolus

A medical condition where air bubbles enter the bloodstream and obstruct blood flow, potentially causing severe health issues.

Difficulty In Breathing

A condition marked by challenges in the ability to take in air effectively, often signaling respiratory or cardiac issues.

Chemical Burn

Tissue damage caused by exposure to a chemical substance, which can result in a wide range of injuries from mild irritation to severe burns.

Normal Saline

A sterile solution of sodium chloride (salt) in water, commonly used for medical treatments, including wound cleaning and intravenous therapy.