When the Auditor Uses Tracing as an Audit Procedure for Tests

question 52

Multiple Choice

When the auditor uses tracing as an audit procedure for tests of transactions she is primarily concerned with which audit objective?

• A)Occurrence
• B)Completeness
• C)Cutoff
• D)Classification

Understand the role and structure of subsidiary ledgers in accounting systems.

Identify the appropriate journal for various types of transactions including operational and financial activities.

Grasp the concept and importance of specialized journals in organizing financial information.

Analyze and interpret business transactions and their impact on company financial statements.

---

Definitions:

Standard Deviation

A metric indicating the degree of spread or variability among values in a collection.

Variation

The occurrence of an organism, trait, or gene in more than one form, leading to diversity within a population.

Statistic

A numerical datum or piece of data derived from a study of a large quantity of numerical data, used for analyzing features of that population.

p < .05

A statistical term indicating that the probability of the observed data, or more extreme, under the null hypothesis is less than 5%, suggesting the results are statistically significant.