An Auditor Who Selects a Sample from the Shipping Documents

question 24

Multiple Choice

An auditor who selects a sample from the shipping documents file to determine whether invoices were prepared is satisfying the audit objective of:

• A)Accuracy.
• B)Completeness.
• C)Control.
• D)Existence.

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Definitions:

Marginal Revenue Product

The extra income derived from the use of an additional unit of a resource or input in production.

Input

Resources such as labor, materials, and capital that are used in the production process to create goods and services.

Derived Demand

is the demand for a good or service that results from the demand for another good or service. For instance, the demand for steel is derived from the demand for cars.

Factors of Production

The resources of land, labor, capital, and entrepreneurial ability.