In Performing a Review of a Client's Cash Disbursements, an Auditor

question 108

Multiple Choice

In performing a review of a client's cash disbursements, an auditor uses systematic sample selection with a random start. The primary disadvantage of this technique is population items

• A) may occur twice in the sample.
• B) must be reordered in a systematic pattern before the sample can be drawn.
• C) may occur in a systematic pattern, thus negating the randomness of the sample.
• D) must be replaced in the population after sampling to permit valid statistical inference.

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Definitions:

Incentive System

An incentive system is a business tool that uses rewards and penalties to motivate employees to achieve specific objectives and improve performance.

Employment Stability

The assurance of consistent work and income for employees, contributing to job satisfaction and loyalty.

Follow Demand

Adapting production and inventory levels to meet current demand trends to minimize surplus and shortages.

Keep Demand

Strategies or practices employed to maintain or increase the desire for products or services among consumers or clients.