Assume That an Auditor Estimates That 10,000 Checks Were Issued

question 93

Multiple Choice

Assume that an auditor estimates that 10,000 checks were issued during the accounting period.If an IT application control which performs a limit check for each check request is to be subjected to the auditor's test data approach,the sample should include

• A) Approximately 1,000 test items.
• B) A number of test items determined by the auditor to be sufficient under the circumstances.
• C) A number of test items determined by the auditor's reference to the appropriate sampling tables.
• D) One transaction.

---

Definitions:

Coupon Interest Rate

The annual interest rate paid on a bond’s face value by the issuing entity, also known as the nominal rate.

Bond Issued At Premium

Occurs when a bond's selling price is higher than its face value, indicating investor confidence or lower-than-average interest rates.

Market Rate

The typical interest rate or cost of borrowing money in the general market, often referred to in terms of loans and savings.

Coupon Rate

The interest rate paid yearly on a bond, depicted as a percentage of its face value.