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:

Creatine Phosphate

A high-energy reserve molecule in muscles, used to rapidly generate ATP during the first few seconds of intense physical activity.

Lactate Concentration

The level of lactate, a metabolic byproduct of anaerobic respiration, present in the blood or muscles, often measured during physical exertion.

Tension

A physical force applied to something that tends to stretch it, often leading to stress or strain on the material.

Mitochondria

Organelles within cells that generate most of the cell's supply of adenosine triphosphate (ATP), used as a source of chemical energy, and involved in other processes such as signaling and cellular differentiation.