Which of the Following Courses of Action Would an Auditor

question 12

Multiple Choice

Which of the following courses of action would an auditor who is aware of several unusually large cash disbursements most likely follow in planning a sample of cash disbursements?

• A) Set the tolerable misstatement at a lower level than originally planned.
• B) Stratify the cash disbursements population so that the unusually large disbursements are selected.
• C) Increase the sample size to reduce the effect of the unusually large disbursements.
• D) Continue to draw new samples until all the unusually large disbursements appear in the sample.

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Definitions:

Non-Emissions DTCs

Diagnostic Trouble Codes that are not related to the vehicle's emissions system, usually indicating issues within other systems like the transmission, ABS, or airbags.

Freeze Frames

A snapshot of the operating conditions of a vehicle's engine at the time of a fault, stored in the engine control unit (ECU) for diagnostics.

Warning Lamp

A visual indicator on the dashboard of a vehicle that alerts the driver to various issues or malfunctions.

Detonation

An uncontrolled, explosive ignition of fuel in an engine's cylinder, causing damage and reducing efficiency.