An Auditor Is Selecting Vouchers for Testing an Entity's Internal

question 893

Multiple Choice

An auditor is selecting vouchers for testing an entity's internal control activities related to the proper approval of vouchers before checks are prepared. The auditor is matching random numbers with voucher numbers to determine which vouchers to inspect. If a random number matches a voided voucher, that voucher ordinarily would be replaced by another voucher in the random sample if the voided voucher:

• A) Cannot be located in the voucher file.
• B) Represents a dollar amount that is material.
• C) Indicates a deviation from the prescribed activity.
• D) Has been properly voided.

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Definitions:

Rituals

Formalized, predetermined sets of symbolic actions performed on specific occasions, often with religious or cultural significance.

Rites of Conflict Reduction

Formal or informal processes designed to alleviate tensions and resolve disputes within an organization, contributing to its social harmony.

Grievance Hearings

Formal meetings where employees can present their complaints or disputes to an employer in a structured setting.

Union Contracts

Union contracts are legally binding agreements between employees, represented by their union, and their employer, detailing wages, working conditions, and other employment terms.