An Auditor Is Least Likely to Test the Internal Controls

question 46

Multiple Choice

An auditor is least likely to test the internal controls that provide for:

• A)approval of the purchase and sale of marketable securities.
• B)vouching a sample of sales transactions to make sure each one has an accompanying shipping document.
• C)segregation of the functions of recording disbursements and reconciling the bank account.
• D)comparison of receiving reports and vendors' invoices with purchase orders.

---

Definitions:

Informational Reports

Documents that present data, facts, and feedback without analysis or recommendations, aiming to inform the reader about specific topics or situations.

Incident Report

A detailed account of an unexpected event, such as an accident or security breach, documenting what happened, where, when, and who was involved.

Routine Reports

Reports that are generated at regular intervals to provide updates, summaries, or tracking of activities and performance.

Boilerplate

Boilerplate refers to standardized text, documents, or sections that can be reused in multiple contexts with minimal changes.