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An Auditor Has Identified the Controller's Review of the Bank

question 41

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An auditor has identified the controller's review of the bank reconciliation as a control to test. In connection with this test, the auditor interviews the controller to understand the specific data reviewed on the reconciliation. In addition, the auditor verifies that the bank reconciliation is properly prepared by the accountant and reviewed by the controller as evidenced by their respective sign-offs. Which of the following types of audit procedures do these actions illustrate?


Definitions:

Proportional Representation

Proportional representation is an electoral system in which parties gain seats in proportion to the number of votes cast for them.

Single-Seat

Pertaining to electoral systems or legislative chambers in which one representative is elected from each district or constituency.

Winner-Take-All

An electoral system in which the candidate receiving the most votes wins all the available seats or delegates, as opposed to proportional representation.

Proportional Basis

A system or method of allocation in which amounts or resources are distributed according to a proportionate ratio or percentage.

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