For Which of the Following Audit Tests Would an Auditor

question 85

Multiple Choice

For which of the following audit tests would an auditor most likely use attributes sampling?

• A)Making an independent estimate of the amount of a LIFO inventory.
• B)Examining invoices in support of the valuation of fixed asset additions.
• C)Selecting accounts receivable for confirmation of account balances.
• D)Inspecting employee time cards for proper approval by supervisors.

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Definitions:

Exemption Clause

A contractual term that limits one party's liability for breach of contract, negligence, or other unforeseen circumstances.

Extra Consideration

An additional benefit or payment required to finalize an agreement or contract, beyond the initially agreed terms.

Contract Discharge

The conclusion of a contractual obligation, either through completion of the contract terms, mutual agreement, or other legal methods.

Novation

The process of substituting a new contract or obligation for an old one, requiring the agreement of all parties involved.