Which of the Following Courses of Action Would an Auditor

question 6

Multiple Choice

Which of the following courses of action would an auditor most likely follow in planning a sample of cash disbursements if the auditor is aware of several unusually large cash disbursements?

• A)Set the tolerable misstatement at a lower level than originally planned.
• B)Stratify the cash disbursements population so that the unusually large disbursements are selected.
• C)Increase the sample size to reduce the effect of the unusually large disbursements.
• D)Continue to draw new samples until all the unusually large disbursements appear in the sample.

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Definitions:

Autocratic Leadership

A leadership style characterized by individual control over all decisions with minimal input from group members.

Commitment

The state or quality of being dedicated to a cause, activity, or relationship.

Disruptive Behavior

Actions or behaviors that interrupt or hinder processes, activities, or the functioning of a group or environment in a negative manner.

Receiver Decodes

The process by which a person interprets and tries to make sense of the message they have received.