The Auditor Should Consider Which of the Following Factors in Selecting

question 14

Multiple Choice

The auditor should consider which of the following factors in selecting the correct sample size?

• A)More testing will be required for manual controls than automated controls because manual controls are more prone to human error.IT controls that have been tested should continue to be reliable.
• B)The more frequently a control is performed,the more items are tested.More internal control tests are performed for controls that are performed daily than for controls performed monthly.
• C)The more assurance we receive from other audit procedures,the less the control is tested.
• D)The more susceptible the control is to management override,the more the control is tested.
• E)both A and B
• F)both B and C
• G)both C and D

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Definitions:

Financing Activities

Transactions related to raising funds or capital for a company, including issuing debt and equity.

Investing Activities

Deals related to buying and selling long-term assets and different investments, excluding cash equivalents.

Long-Term Investments

Investments made with the intention to hold for more than a year, including stocks, bonds, or real estate, aimed at achieving higher returns over time.

Investing Activities

Financial transactions related to the purchase and sale of long-term assets and investments in other firms.