An Auditor Plans to Examine a Sample of 20 Checks

question 9

Multiple Choice

An auditor plans to examine a sample of 20 checks for countersignatures as prescribed by the entity's internal control procedures. One of the checks in the chosen sample of 20 cannot be found. The auditor should consider the reasons for this limitation and

• A) Evaluate the results as if the sample size had been 19.
• B) Treat the missing check as a deviation for the purpose of evaluating the sample.
• C) Treat the missing check in the same manner as the majority of the other 19 checks (i.e., countersigned or not).
• D) Choose another check to replace the missing check in the sample.

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Definitions:

Decrease in Supply

A situation where the quantity of a good that producers are willing to produce and sell at a given price level falls.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.

Good X

A placeholder term for any product or service in economic analysis.

Technology Used

Refers to the tools, equipment, and techniques applied in the production of goods and services, influencing efficiency and productivity.