Which of the Following Courses of Action Would an Audit

question 123

Multiple Choice

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

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

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