The Auditor Would Like to Conduct Dual Purpose Tests Verifying

question 102

Multiple Choice

The auditor would like to conduct dual purpose tests verifying that the programs performing the totaling and aging of accounts receivable are functioning correctly as well as quantifying any errors.Which of the following is a dual purpose test that the auditor could use?

• A)use analytical review and compare amounts from current to prior
• B)inquire how the calculations are performed
• C)use test data and observe how the invoice(s)in the test are aged
• D)use generalized audit software to reperform the calculations

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Definitions:

Dishonesty

A behavior characterized by the act of lying, cheating, or stealing, typically resulting in a loss of trust or integrity.

Ethical Issues

Ethical issues refer to moral challenges and dilemmas that arise in professional and personal contexts, requiring reflection and action based on ethical principles.

Subscribers

Individuals or entities that have entered into an agreement to receive or utilize services, products, or information from a provider, typically on a recurring basis.

Rationalisations

The process of reorganizing a company to increase its efficiency, often involving streamlining operations and reducing staff.