An Auditor Used a Questionnaire During an Interview to Gather

question 211

Multiple Choice

An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. The primary deficiency with the above process is that:

• A) The auditor failed to consider the importance of the information offered.
• B) A questionnaire was used in a situation where a structured interview should have been used.
• C) Using a questionnaire precludes the auditor from documenting other information.
• D) The engagement program was incomplete.

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Definitions:

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, after all capital costs are deducted from net revenues.

Internal Centralized Service Department

A department within an organization that provides essential services or support centrally to other departments, often aiming to increase efficiency and standardization.

Manufacturing Department

A specialized division within a company that is focused on the production of goods.

Payroll Accounting

The process of recording and managing all financial transactions related to employee compensation.