Attribute Sampling Would Be an Appropriate Method to Use on Which

question 29

Multiple Choice

Attribute sampling would be an appropriate method to use on which one of the following procedures in an audit program?

• A)Review sales transactions for large and unreasonable amounts.
• B)Observe whether the duties of the accounts receivable clerk are separate from handling cash.
• C)Examine a sample of duplicate sales invoices for credit approval by the credit manager.
• D)Review the aged schedule of accounts receivable to determine if amounts receivable from officers are included.

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Definitions:

Breach Of Contract

The failure to perform as explicitly stated or implied within the terms of a contractual agreement.

Option Contract

A contract granting one party the right, but not the obligation, to buy or sell a good or asset at a predetermined price within a specific time frame.

Postbox Rule

The Postbox Rule, also known as the mailbox rule, is a legal principle that determines the moment at which an offer is considered accepted, typically the moment the acceptance is sent.

Binding Contract

A legal agreement between two or more parties that is enforceable by law.