An Auditor Plans to Examine a Sample of 20 Checks

question 57

Multiple Choice

An auditor plans to examine a sample of 20 checks for countersignatures as prescribed by the entity's internal control procedures. One of the checks in the chosen sample of 20 cannot be found. The auditor should consider the reasons for this limitation and:

• A)evaluate the results as if the sample size had been 19.
• B)treat the missing check as a deviation for the purpose of evaluating the sample.
• C)treat the missing check in the same manner as the majority of the other 19 checks (i.e., countersigned or not).
• D)choose another check to replace the missing check in the sample.

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Definitions:

Forcing Function

A forcing function is an external function or action applied to a system that drives its response, often used in differential equations to model external influences.

PLC

A Programmable Logic Controller is a ruggedized digital computer used for the automation of various electromechanical processes, such as control of machinery on factory assembly lines.

Programming Device

A tool or equipment used to program the firmware or software of electronic devices, often used in manufacturing, development, or maintenance.