Which of the Following Procedures Most Likely Could Assist an Auditor

question 131

Multiple Choice

Which of the following procedures most likely could assist an auditor in identifying related party transactions?

• A) Performing tests of controls concerning the segregation of duties.
• B) Evaluating the reasonableness of management's accounting estimates.
• C) Reviewing confirmations of compensating balance arrangements.
• D) Scanning the accounting records for recurring transactions.

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Definitions:

Sigma Notation

A symbol used in mathematics to represent the sum of a sequence of terms defined by an expression.

Median

A statistical measure representing the middle value in a sorted list of numbers, where half the numbers are above and half are below.

Negative Correlation

When the value of one variable decreases as the value of the other variable increases.

Scatterplot

A type of data visualization that uses dots to represent values obtained for two different variables, one plotted along the x-axis and the other plotted along the y-axis.