While Performing an Accounts Payable Engagement, a Senior Auditor Wants

question 406

Multiple Choice

While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake? 1. Ensure all tests use a random sampling technique. 2. Consider a judgmental approach for the sample size. 3. Assess testing errors through root cause analysis. 4. Ensure that the entire data set is tested.

• A) 1 and 2.
• B) 1 and 3.
• C) 2 and 3.
• D) 2 and 4.

---

Definitions:

Sensory Memory

The shortest-term element of memory, it allows the ability to retain impressions of sensory information after the original stimuli have ended.

Limited-Capacity

The concept that there is an upper limit on the amount of information or number of tasks that an individual can process or perform at one time.

Unrehearsed Information

Information that has not been actively reviewed or practiced, often leading to its being forgotten or not well-integrated into memory.

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.