Jerry Tim Is Examining an Important Internal Control in the Audit

question 79

Multiple Choice

Jerry Tim is examining an important internal control in the audit of Langly Company.In past audits,deviations from this control have been observed at a minimal rate (less than 0.1 percent) ; however,because the account balance affected by this control is highly susceptible to fraud,it is important that Jerry obtain a high level of assurance that deviations occur at no higher than a predetermined (low) rate.Which of the following sampling methods would Jerry most likely use to evaluate this control?

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

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Definitions:

Universalist Approach

A belief in or approach towards applying the same rules or norms universally, without regard to cultural differences.

Functional Approach

A method or strategy that focuses on the roles, duties, and functions that entities perform within a system or organization.

Public Organizations

Entities that operate within the public sector, funded and controlled by government bodies to serve the public interest.

Private Organizations

Entities that operate independently of government control, often focusing on providing goods or services for profit.