What Is the Auditor's Normal Course of Action If a "Logical

question 106

Multiple Choice

What is the auditor's normal course of action if a "logical unit" is selected twice in MUS sampling?

• A) The auditor should count the logical unit as a single selection and proceed as normal.
• B) The auditor should count the logical unit as two selections and proceed as normal.
• C) The auditor should not include the logical unit as a selection because the dollar amount of this unit is excessively large.
• D) The auditor should replicate the sample using an alternative random start.

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Definitions:

Product Availability

The degree to which products are in stock and accessible to customers when they want to purchase them, impacting customer satisfaction and sales.

Supply Chain

A network connecting suppliers, manufacturers, and customers that facilitates the production, handling, and distribution of goods and services.

Profitability

The ability of a business to generate earnings above its expenses and investments, indicating the financial health and success of an entity.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.