For Which of the Following Tests Would the Auditor Use

question 25

Multiple Choice

For which of the following tests would the auditor use generalised audit softwareto test the completeness assertion of inventory?

• A)Identification of inventory items which haven't been sold for three months.
• B)A sequence check looking for missing purchase invoice numbers.
• C)A sequence check looking for duplicate purchase invoice numbers.
• D)Selecting items from the inventory records in order to trace back to physical inventory counts.

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Definitions:

Framing Error

The tendency to highlight certain aspects of a situation depending on whether they are positive or negative to solve a problem while ignoring other aspects.

Confirmation Bias

The tendency to seek out information that fuels our preexisting views and to discount information that conflicts with our worldview.

Randomness Error

Variability in data or outcomes that cannot be attributed to any specific cause, often seen as noise in experimental or statistical analyses.

Anchoring And Adjustment

A cognitive bias where an individual depends too heavily on an initial piece of information (anchor) when making decisions and makes insufficient adjustments based on subsequent information.