An Auditor Is Testing Internal Control Procedures That Are Evidenced

question 28

Multiple Choice

An auditor is testing internal control procedures that are evidenced on an entity's vouchers. To select the vouchers for testing, the auditor obtains random numbers between the first and last voucher number in the period. If a random number matches the number of a voided voucher, that voucher ordinarily should be replaced by another voucher in the random sample if the voucher

• A) Constitutes a deviation.
• B) Has been properly voided.
• C) Cannot be located.
• D) Represents an immaterial dollar amount.

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Definitions:

Jeweler

A person or business that designs, makes, sells, and repairs jewelry and watches.

Clothing Store

A retail establishment that sells garments and apparel for individuals of all ages.

Housing Development

The process and business of developing land into residential properties, including homes and apartment buildings.

Profits

The financial benefit realized when revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.