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.

---

Definitions:

Anxious-fearful

A personality disposition characterized by high levels of anxiety and fear.

Agreeable-extraverted

A personality description pertaining to individuals who are both cooperative, friendly (agreeable) and outgoing, energetic (extraverted).

Personality Disorders

Mental health conditions characterized by unhealthy and rigid patterns of thinking, functioning, and behaving that deviate from cultural expectations and cause distress or impairment.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification and diagnostic tool for mental disorders used by mental health professionals.