After Partially Completing an Internal Control Review of the Accounts

question 270

Multiple Choice

After partially completing an internal control review of the accounts payable department, an auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use.

• A) Simple random sampling to select a sample of vouchers processed by the department during the past year.
• B) Probability-proportional-to-size sampling to select a sample of vouchers processed by the department during the past year.
• C) Discovery sampling to select a sample of vouchers processed by the department during the past year.
• D) Judgmental sampling to select a sample of vouchers processed by clerks who were identified by the department manager as acting suspiciously.

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Definitions:

Subliminal

Pertaining to stimuli or signals that are below the threshold of human perception but can influence thoughts, feelings, or actions.

Unpleasant Word

A term that evokes negative feelings or associations.

Pleasant Words

Words that evoke positive feelings and associations, often used to create a friendly or agreeable impact.

Signal-Detection Theory

A theory that explores how decisions are made under conditions of uncertainty, distinguishing between sensory signals and noise.