An Auditor Tests a Sample of Transactions for Proper Authorization

question 71

Multiple Choice

An auditor tests a sample of transactions for proper authorization. She concludes that the control is not operating effectively, although it actually is. This is an example of:

• A) sampling error.
• B) sampling risk.
• C) detection risk.
• D) All of the above.

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Definitions:

P.T. Barnum

A 19th-century American showman and businessman remembered for promoting celebrated hoaxes and for founding the Barnum & Bailey Circus.

Publicity Stunts

Intentionally designed events or activities created to attract public attention and media coverage, often used by marketers or public relations professionals to generate interest.

Press Conference

A media event in which an organization or individual presents information and answers questions from journalists.

Corporate Social Responsibility

A concept where businesses integrate social and environmental concerns in their operations and interactions with their stakeholders.