When Selecting Items for Testing, the Auditor Concentrates Their Selection

question 26

Multiple Choice

When selecting items for testing, the auditor concentrates their selection on high dollar value items. This approach is:

• A) never appropriate in performing audit procedures under Australian auditing standards.
• B) not an audit sampling technique but is often an appropriate evidence collection technique.
• C) appropriate only if the auditor is undertaking statistical sampling.
• D) generally a useful and efficient method for all audit tests.

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Definitions:

Procedures

Step-by-step instructions designed to perform a specific task or solve a particular problem.

Communication Obstacle

Any barrier that prevents effective exchange of ideas or information between people, such as language differences, cultural misunderstandings, or physical barriers.

Obstacle Explanation

The process of detailing or clarifying the nature, causes, and potential solutions for barriers or challenges faced.

Bypassing

Occurs when there is a misunderstanding or lack of clarity in communication due to differences in the interpretation of words or phrases.