Which Audit Procedure Would Be Used to Test for the Existence

question 80

Multiple Choice

Which audit procedure would be used to test for the existence balance-related audit objective?

• A) Trace ten accounts from the aged trial balance to the accounts receivable master file.
• B) Confirm accounts receivable.
• C) Review large sales returns and allowances before and after the balance sheet date.
• D) Trace ten accounts from the trial balance to the accounts on the master file.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Variance

A measure of the dispersion representing the average of the squared differences from the mean in a data set.

Involuntary Reflex Responses

Automatic, rapid responses of the nervous system to a stimulus that do not require conscious thought, protecting the body from harm.

Group Mean

A statistical measure that represents the average value of data points within a specified set or group.