An Auditor Is Concerned About a Policy of Management Override

question 32

Multiple Choice

An auditor is concerned about a policy of management override as a limitation of internal control. Which of the following tests would best assess the validity of the auditor's concern?

• A)Matching purchase orders to accounts payable.
• B)Verifying that approved spending limits are not exceeded.
• C)Tracing sales orders to the revenue account.
• D)Reviewing minutes of board meeting.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.