The Auditor Should Consider Which of the Following Factors in Selecting

question 20

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 transactions in a system,the more items need to be tested.
• C)The more assurance we receive from other audit procedures,the more the control is tested.
• D)The less susceptible the control is to management override,the more the control is tested.
• E)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.
• F)both A and C
• G)both A and E

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Definitions:

Trend Percentage

A comparative analysis technique that calculates the change in financial data over multiple periods to identify patterns or trends.

Base Year

A reference year used for comparative financial analysis, providing a benchmark for measuring changes or growth over time.

Discontinued Operations

Components of a business that have been sold or written off and are no longer part of ongoing operations.

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The process of designing, producing, and assembling telescopes, often involving precision engineering and specialized materials.