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.

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Definitions:

Escalating Commitment

The phenomenon where people increase their investment in a decision despite new evidence suggesting that the decision was wrong.

Framing Error

A cognitive bias where information is presented or perceived in such a way that it leads to incorrect conclusions or decisions.

Lack-of-participation Error

A bias or error in decision-making that occurs when not all stakeholders or team members are involved or engaged in the process.

Anchoring and Adjustment Bias

A cognitive bias where an initial piece of information (anchor) influences subsequent judgments or decisions, leading to potential errors in estimation.