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:

Charisma

is a compelling attractiveness or charm that can inspire devotion in others.

Unconventional Behavior

Refers to actions or behaviors that deviate from society's norms or expectations.

Enthusiastic Visioning

The dynamic process of creating and sharing an inspiring and ambitious view of the future to motivate others.

Early Conceptions

Initial ideas or understandings formed at the beginning of the developmental or creative process.