An Auditor Wishes to Perform Tests of Controls on a Client's

question 75

Multiple Choice

An auditor wishes to perform tests of controls on a client's cash disbursements procedures.If the control activities leave no audit trail of documentary evidence,the auditor most likely will test the procedures by

• A) Inquiry and analytical procedures.
• B) Confirmation and observation.
• C) Observation and inquiry.
• D) Analytical procedures and confirmation.

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Definitions:

Demand Forecast

The method of predicting the amount of a product or service that customers will buy in the future.

Correlated

When two or more variables are related in some way, meaning that a change in one variable is associated with a change in another.

Aggregate Forecasts

Predictions of future demand, sales, or other metrics for entire markets or sectors, typically used for strategic planning.

Disaggregate Forecasts

Disaggregate forecasts involve breaking down aggregate predictions into more detailed, specific forecasts, such as by product, region, or customer segment, to improve planning and decision-making.