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:

Confirmation Bias

The tendency to search for, interpret, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Causal Attribution

The process by which individuals explain the reasons or causes behind events and behaviors.

Demand Characteristics

These are subtle cues or signals in the environment that influence participants' behaviors or responses in experiments, potentially affecting the validity of the results.

Interaction

The way in which two or more entities act upon each other or communicate, leading to an outcome or effect.