Assume That an Auditor Estimates That 10,000 Checks Were Issued

question 93

Multiple Choice

Assume that an auditor estimates that 10,000 checks were issued during the accounting period.If an IT application control which performs a limit check for each check request is to be subjected to the auditor's test data approach,the sample should include

• A) Approximately 1,000 test items.
• B) A number of test items determined by the auditor to be sufficient under the circumstances.
• C) A number of test items determined by the auditor's reference to the appropriate sampling tables.
• D) One transaction.

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Definitions:

Building Purchase

The acquisition of a physical structure intended for use in operations or as an investment, through payment or financing.

Land Purchase

The acquisition of land property for building or investment purposes, recorded as a long-term asset in the business's financial statements.

Note Payable

It represents a written promise to pay a specified amount of money, usually with interest, by a certain date.

Journalize

The process of recording transactions in a company's journal, documenting the details of financial transactions and their effects on the accounts.