In Determining the Number of Documents to Select for a Test

question 51

Multiple Choice

In determining the number of documents to select for a test to obtain assurance that all sales returns have been properly authorized,an auditor should consider the tolerable rate of deviation from the control activity.The auditor should also consider: 1.Likely rate of deviations
2) Allowable risk of underreliance.

• A)1 only.
• B)2 only.
• C)Both 1 and 2.
• D)Either 1 or 2.

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Definitions:

Consensus

A general agreement among the members of a group or community, reflecting a common opinion or shared position on a particular issue.

High-Status Person

An individual who holds a position of authority or esteem in a social hierarchy, often influencing group dynamics and decisions.

Hierarchically Organized Group

Hierarchically organized groups have a clear structure with different levels of authority or status, guiding decision-making processes and roles within the group.

Communications

The process of creating, sending, receiving, and interpreting messages through verbal, non-verbal, written, and electronic means.