Under Which of the Following Circumstances Would an Auditor Be

question 43

Multiple Choice

Under which of the following circumstances would an auditor be most likely to intensify an examination of a $1,000 petty cash fund maintained on an imprest basis?

• A)Reimbursement vouchers are not prenumbered.
• B)Reimbursement of the fund from the general cash account occurs twice or more each week.
• C)The custodian occasionally uses the cash fund to cash employee checks.
• D)The custodian endorses reimbursement checks.

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Definitions:

Rank Order

The arrangement or sequencing of items according to their importance, size, value, or any criterion that establishes a hierarchy or priority.

Electronic Brainstorming

A facilitated brainstorming process conducted over electronic platforms to generate ideas from participants in different locations.

Evaluation Apprehension

The fear of being judged by others, which can influence behavior and performance in social and evaluative situations.

Production Blocking

A phenomenon where an individual's contribution or productivity is impeded or halted by the pacing and processes of a group activity.