For Which of the Following Audit Tests Would an Auditor

question 73

Multiple Choice

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

• A)Inspecting purchase orders for proper approval by supervisors.
• B)Making an independent estimate of recorded payroll expense.
• C)Determining that all payables are recorded at year end.
• D)Selecting accounts receivable for confirmation of account balances.

---

Definitions:

Pure Play Approach

An investment strategy focusing on companies that specialize in a specific industry sector or product, minimizing diversification to capitalize on sector strengths.

Cost Of Capital

The profit percentage a firm has to secure on its investments to uphold its market valuation and lure funding.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.