In Which of the Following Circumstances Would the Auditor Most

question 18

Multiple Choice

In which of the following circumstances would the auditor most likely use variables sampling?

• A)Identifying the susceptibility of the account balance to misstatement.
• B)Evaluating the operating effectiveness of specific control procedures.
• C)Evaluating the operating design of specific control procedures.
• D)Determining whether the client's accounts receivable balance is correctly recorded.

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Definitions:

Corporation

A corporation is a legal entity that is separate and distinct from its owners, offering limited liability protection to its shareholders.

Actual Authority

Authority given to an agent expressly or by implication.

Estoppel

An equitable remedy that stops a party from trying to establish a position or deny something that, if allowed, would create an injustice.

Ratification

The action of officially approving or confirming an agreement or act, making it valid.