Which of the Following Procedures Would an Auditor Most Likely

question 28

Multiple Choice

Which of the following procedures would an auditor most likely perform to verify management's assertion of completeness?

• A)Compare a sample of shipping documents to related sales invoices.
• B)Observe the entity's distribution of payroll checks.
• C)Confirm a sample of recorded receivables by direct communication with the debtors.
• D)Review standard bank confirmations for indications of kiting.

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Definitions:

Locus Of Causality

Attribution of behavior to either an aspect of the actor (internal) or to some aspect of the situation (external).

Stability

The condition of being resistant to change and not easily upset or disturbed.

Internality

The belief in one's ability to control events and outcomes in their own life, often associated with a proactive mindset.

Externality

A term in economics where a cost or benefit that affects a party who did not choose to incur that cost or benefit.