An Auditor Selects a Sample from the File of Shipping

question 19

Multiple Choice

An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is performed to satisfy the audit objective of:

• A) Accuracy.
• B) Completeness.
• C) Control.
• D) Existence.

---

Definitions:

Fixed Costs

Financial obligations that do not fluctuate with changes in production levels or sales numbers, like rent, salary payments, and insurance premiums.

Direct Labor

This refers to the wages paid to employees who are directly involved in the production of goods or services.

Automation

The use of technology to perform tasks without human intervention, often leading to increased efficiency and accuracy.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.