The Auditor Selects 25 Invoices for Testing and Detects No

question 57

Multiple Choice

The auditor selects 25 invoices for testing and detects no errors. As a result, she concludes that the expense account is fairly stated. Unbeknown to the auditor, the client has altered some of the invoices to reduce the amount reported as expense. This is an example of:

• A) an efficiency problem.
• B) incorrect acceptance.
• C) a sampling error.
• D) Both b and c.

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Definitions:

Cretaceous Period

The geological time period between 145 and 66 million years ago, the last period of the Mesozoic Era, known for the extinction of dinosaurs and rise of flowering plants.

Pleistocene Epoch

A geological timeframe that lasted from about 2.6 million to 11,700 years ago, characterized by multiple ice ages and the evolution of modern humans.

Fluctuating Climates

Refers to the variations and changes in the climate patterns over time.

Plant Communities

Groups of plants that live together in a specific habitat and interact with each other, forming a sort of ecological community.