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:

Peripheral

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