An Auditor Traces the Sales Prices to the Authorized Price

question 103

Multiple Choice

An auditor traces the sales prices to the authorized price list in effect at the date of the transaction. Which of the following procedures has the auditor performed?

• A) inquiry
• B) observation
• C) reperformance
• D) examination

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Definitions:

Organizational Structures

The system of hierarchy and arrangement within an organization defining how roles, responsibilities, and authority are distributed.

Line Structure

An organizational framework where direct reports and authority flow vertically from the top executive to the lowest level employee, emphasizing clear chains of command.

Multidivisional Structure

A corporate organizational structure where a company is divided into multiple, semi-autonomous units, each with their responsibilities, operations, and management.