When Performing a Test of Controls with Respect to Control

question 46

Multiple Choice

When performing a test of controls with respect to control over cash disbursements, 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) must be systematically replaced in the population after sampling.
• B) may systematically occur more than once in the sample.
• C) may be ordered 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:

Disneyland

A globally recognized theme park brand, known for its entertainment complexes that blend imaginative attractions with characters from Disney movies.

Southern California

A geographical and cultural region in the southwestern part of the U.S. state of California.

Second-degree Price Discrimination

A pricing strategy where prices vary according to quantity sold or consumed, size, or version of the product, not directly by consumer identity.

Quantity Blocks

Predefined quantities of goods or services, often used in pricing or packaging.