An Auditor Wishes to Perform Tests of Controls on a ABC

question 22

Multiple Choice

An auditor wishes to perform tests of controls on a ABC Ltd's cash disbursements procedures.If the control procedures leave no audit trail of documentary evidence, the auditor most likely will test the procedures by:

• A)enquiry and analytical procedures.
• B)confirmation and observation.
• C)observation and enquiry.
• D)analytical procedures and confirmation.

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Definitions:

Controlled Experiment

An experiment in which all variables are kept constant except for the independent variable(s).

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure the effects of the treatment.

Experimental Group

A group in an experiment that receives the variable being tested.

Metaphors

Figures of speech that describe an object or action in a way that isn’t literally true, but helps explain an idea or make a comparison.