Which of the Following Is a Procedure Used in an Audit

question 40

Multiple Choice

Which of the following is a procedure used in an audit where there is a heightened risk of fraud related to accounts payable and other related expense accounts?

• A)Send blank confirmations to vendors that ask them to furnish information about all outstanding invoices,payment terms,and payment histories.
• B)Scan journals for unusual or large year-end transactions and adjustments.
• C)Obtain and examine documentation for payments of invoices that are for amounts just under the limit that typically requires some level of approval.
• D)All the above.

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Definitions:

Test-retest Reliability

The consistency of a test's results when the same subjects take the same test again after a period of time.

Standard Score

A score that has been transformed to fit a normal distribution, usually with a mean of 100 and a standard deviation of 15.

National Mean

The average score or value derived from a specific set of data collected across a nation.

Standard Deviation

The statistical metric that calculates the dispersion or spread of data points in a dataset around the average value.