In Examining Cash Disbursements, an Auditor Plans to Choose a Sample

question 13

Multiple Choice

In examining cash disbursements, an auditor plans to choose a sample using systematic selection with a random start. The primary advantage of such a systematic selection is that population items

• A) That include fraud will not be overlooked when the auditor exercises compatible reciprocal options.
• B) May occur in a systematic pattern, thus making the sample more representative.
• C) May occur more than once in a sample.
• D) Do not have to be prenumbered in order for the auditor to use the technique.

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Definitions:

Job-Related Knowledge

The understanding and expertise that an individual possesses which is directly relevant to the tasks, processes, and responsibilities of a specific job role.

Training

The process of providing employees with the knowledge and skills necessary to perform their job duties effectively and efficiently.

Planned Effort

A deliberate and structured attempt to achieve a specific goal, often involving a series of actions or tasks.

Needs Assessment

The process of determining the gap between an organization's current state and its desired state to identify training or developmental needs.