When Performing a Test of Controls with Respect to Control

question 56

Multiple Choice

When performing a test of controls with respect to control over cash receipts, an auditor may use a systematic sampling technique with a start at any randomly selected item. The biggest disadvantage of this type of sampling is that the items in the population:

• A) may systematically occur more than once in the sample.
• B) must be systematically replaced in the population after sampling.
• C) may occur in a systematic pattern, thus destroying the sample randomness.
• D) must be recorded in a systematic pattern before the sample can be drawn.

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Definitions:

Placebo Effects

The phenomenon where an individual experiences a perceived improvement in health or well-being after receiving a treatment with no therapeutic value, attributed to the individual's belief in the effectiveness of the treatment.

Controlled Studies

Scientific studies that involve direct comparison between experimental groups and control groups to determine the effect of a variable.

Disorder

A condition characterized by disruption to normal functioning, often referring to mental health or physical health issues.

Expectancies

Beliefs or predictions about future events, particularly regarding the likelihood of experiencing certain outcomes.