An Auditor Plans to Examine a Sample of 20 Checks

question 6

Multiple Choice

An auditor plans to examine a sample of 20 checks for countersignatures as prescribed by the client's internal control procedures.One of the checks in the chosen sample of 20 cannot be found.The auditor should consider the reasons for this limitation and

• A) Evaluate the results as if the sample size had been 19.
• B) Treat the missing check as a deviation for the purpose of evaluating the sample.
• C) Treat the missing check in the same manner as the majority of the other 19 checks (i.e., countersigned or not).
• D) Choose another check to replace the missing check in the sample.

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Definitions:

Elton Mayo

A pioneering researcher in organizational theory, particularly known for his work on the Hawthorne Studies, which highlighted the importance of social relations in the workplace.

Mutual Respect

A reciprocal understanding and recognition of the value and importance of others, fostering positive relationships and communication.

Theory Y

A management approach that assumes employees are motivated, self-directed, and enjoy the work they do, advocating for a participative style.

Quite Creative

Demonstrating a high level of ingenuity and uniqueness in thinking or producing.