Which of the Following Statements Is Correct Regarding an Audit

question 20

Multiple Choice

Which of the following statements is correct regarding an audit team's documentation requirements for attributes sampling?

• A)The audit team's conclusions do not need to be documented unless they decide to rely on internal control at planned levels.
• B)The audit team should document information regarding the number of deviations and sample deviation rate,but not the allowance for sampling risk.
• C)The audit team's documentation should include information about the control environment,including an assessment of management's integrity.
• D)The audit team's documentation should include information regarding all steps of the sampling process and implications of the conclusions reached on internal control reliance and substantive procedures.

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Definitions:

Gestalt Psychologists

Psychologists who focus on how people integrate and organize perceptual information into meaningful wholes.

The Whole

A concept referring to an entity being considered as a single, complete unit rather than just the sum of its parts.

Chronically

Refers to something happening in a persistent and recurring manner over a long period.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth that are responsible for detecting the five elements of taste perception: sweet, salty, sour, bitter, and umami.