An Example of an Audit Procedure That Relates to the Auditor's

question 13

Multiple Choice

An example of an audit procedure that relates to the auditor's understanding of internal control is to

• A)count petty cash at all locations.
• B)use test data to verify functioning of data entry controls.
• C)observe entity activities and operations.
• D)trace all large fixed-asset purchases to supporting invoices.

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Definitions:

Order-Taker

An individual whose role is primarily to take customer orders without actively engaging in sales persuasion or additional selling activities.

Manufacturer's Sales Representative

A salesperson employed directly by a manufacturer to sell and promote its products to potential buyers.

T & J Textiles

A hypothetical or specific company engaged in the production or distribution of textile products.

Detail Salesperson

A sales professional specializing in providing detailed information and promoting specific products or services to potential clients, often in a personalized manner.