Which of the Following Procedures Most Likely Would Provide an Auditor

question 19

Multiple Choice

Which of the following procedures most likely would provide an auditor with evidence about whether an entity's internal control is suitably designed to prevent or detect material misstatements?

• A)Scanning the journals produced by the internal control system.
• B)Performing analytical procedures using data aggregated at a high level.
• C)Vouching a sample of transactions directly related to the controls.
• D)Observing the entity's personnel applying the controls.

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Definitions:

Home Ownership Policy

Policies or programs designed to encourage or facilitate the process of individuals owning their homes.

Navigation Limits

Restrictions or boundaries set for the areas in which a vessel is allowed to travel.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract.

Co-Insurance Clause

A clause that may be inserted in an insurance policy that renders the insured an insurer for a part of the loss if the insured fails to maintain insurance coverage of not less than a specified minimum amount or percentage of the value of a property.