The Auditor Has Decided to Use Systematic Selection of Cash

question 13

Multiple Choice

The auditor has decided to use systematic selection of cash payments when testing the control that cheque payments are supported by a supplier's invoice, a purchase requisition and a goods received note. Each cheque comprises a sampling unit. There are 5000 cheques drawn (numbered 1-5000) and the total amount of cash payments is $10 million. The sample size is 20 and the random start is 127. Given this information, the second item selected will be item no:

• A) Cheque number 5127.
• B) Cheque number 627.
• C) Cheque number 377.
• D) Some other item number.

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Definitions:

Psychosexual Stages

A theory in Freudian psychology that proposes five stages of childhood development, each characterized by sexual pleasure centered on a particular erogenous zone.

Developmental Periods

Distinct phases during the lifespan of an organism, marked by specific physical, psychological, or emotional attributes that are associated with a particular age range.

Adult Personality

The characteristic patterns of thoughts, feelings, and behaviors that make a person unique and which tend to stabilize in adulthood.

Psychosexual Stages

In Freudian psychology, sequential phases of psychological development through which a child's libido focuses on distinct erogenous zones from birth through maturity.