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:

Trait Approach

A theory of leadership that suggests certain qualities or characteristics make someone a natural leader.

Human Skills

Essential interpersonal skills that facilitate working with others, such as communication, empathy, and conflict resolution, crucial in leadership and management.

Katz

Refers to a model developed by Robert Katz that identifies three essential skills for effective leadership: technical, human, and conceptual skills.

Strategic Ideas

Strategic ideas are concepts or plans formulated to achieve a specific long-term goal or to gain a competitive advantage in a business or organizational context.