Assume That the Client's Internal Controls Require a Clerk to Attach

question 10

Multiple Choice

Assume that the client's internal controls require a clerk to attach a shipping document to every duplicate sales invoice but this procedure is not followed exactly 3 percent of the time.If the auditor selects a sample of 200 duplicate sales invoices,which of the following sample results is most representative of the population?

• A)three shipping documents are missing
• B)six shipping documents are missing
• C)five shipping document are missing
• D)there were no shipping documents missing

---

Definitions:

Fiscal Year

A one-year period used for accounting and financial reporting purposes, which may not align with the calendar year.

Foreign Exchange Gain

Profit arising from fluctuations in exchange rates which increase the value of foreign currency-denominated assets.

Exchange Rate

The valuation of a currency when converted to a different currency, which indicates the equivalent amount in the second currency.

Payment Date

The specific date on which dividends are actually paid out to shareholders or when a debt obligation must be repaid.