Which of the Following Courses of Action Would an Auditor

question 47

Multiple Choice

Which of the following courses of action would an auditor most likely follow in planning a sample of cash disbursements if the auditor is aware of several unusually large cash disbursements?

• A) Set the tolerable deviation rate at a lower level than originally planned.
• B) Identify the large and unusual disbursements as individually significant and test 100 percent.
• C) Increase the sample size to reduce the effect of the unusually large disbursements.
• D) Continue to draw new samples until all the unusually large disbursements appear in the sample.

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Definitions:

Crowdfunded Projects

Initiatives or ventures funded by raising small amounts of money from a large number of people, typically via online platforms.

Kickstarter

A crowdfunding platform designed to help bring creative projects to life by allowing creators to seek financial support from the public.

Crowdfunding Efforts

Initiatives taken to raise funds for a project or venture by soliciting small contributions from a large number of people, typically via the internet.

Bootstrapping

A self-funding approach wherein an entrepreneur starts a company with personal finances or the revenue generated by the business, rather than external investment.