An Auditor Is Examining an Important Internal Control in His

question 129

Multiple Choice

An auditor is examining an important internal control in his audit of ABC Company.Because the account balance affected by this control is highly susceptible to fraud,he will reject the sample if even one deviation is discovered.What type of sampling plan should he use?

• A) Attributes sampling.
• B) Discovery sampling.
• C) Sequential sampling.
• D) Statistical sampling.

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Definitions:

Inpatient Day

A 24-hour period in which a patient is in a hospital or health care facility for treatment and care.

Nutritional Reserves

The body's stored nutrients, including fats, proteins, and carbohydrates, which can be utilized during periods of insufficient dietary intake.

Vesicular Breath Sound

Normal breathing sounds made by air moving through the small airways in the lungs.

Inspiratory Phase

The period during breathing when air is inhaled into the lungs.