For Which of the Following Audit Tests Would an Auditor

question 85

Multiple Choice

For which of the following audit tests would an auditor most likely use attributes sampling?

• A)Making an independent estimate of the amount of a LIFO inventory.
• B)Examining invoices in support of the valuation of fixed asset additions.
• C)Selecting accounts receivable for confirmation of account balances.
• D)Inspecting employee time cards for proper approval by supervisors.

---

Definitions:

Budget Manual

A comprehensive guide that outlines the procedures, policies, and responsibilities associated with the budgeting process in an organization.

Budget Procedures

The set of processes and guidelines a business or organization follows to create, implement, and monitor its budget.

Budget Schedule

A detailed plan that outlines a company's financial and operational goals over a specific period, often including expected revenues, expenses, and cash flows.

Budget Manual

A comprehensive guideline document for the preparation of budgets, detailing procedures, and responsibilities.