An Auditor Selects a Sample of Items Recorded and Traces

question 28

Multiple Choice

An auditor selects a sample of items recorded and traces them back to the supporting documentation.This is an example of which of the following?

• A)Directional testing for existence.
• B)Directional testing for completeness.
• C)Direct testing for valuation.
• D)Direct testing for rights.

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Definitions:

Disequilibrium

A market condition where there is a mismatch between the quantity supplied and the quantity demanded, preventing market equilibrium.

Government Intervention

The involvement by the government in the market to influence economic outcomes.

Economic Models

Simplified representations of complex economic processes or systems often used to analyze economic decisions, market outcomes, or to predict responses to changes in policy or external conditions.

Mexico

A nation situated in the southern part of North America, renowned for its vibrant cultural traditions, varied terrain, and importance in the economy.