The Auditor Uses a Variety of Procedures to Test Whether

question 74

Multiple Choice

The auditor uses a variety of procedures to test whether controls effectively.These procedures may all of the following except:

• A)Take a sample of purchase orders and trace them through the system to determine whether (a)there was proper review of credit,and (b)credit authorization or denial was proper.
• B)Take a sample of recorded items (accounts payable)and send a positive confirmation to the related vendors to determine whether the balance is properly stated.
• C)Take a sample of recorded items (accounts receivable)and trace back to the credit approval process to determine that it was performed appropriately.
• D)Use a computer audit program to read all accounts receivable and develop a print- out of all account balances that exceed their credit authorization.

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Definitions:

Partial Hearing Loss

A condition where there is a decrease in the ability to perceive sound in one or both ears, but not complete deafness.

Communication Medium

The tool or channel through which information is transmitted from one party to another, ranging from written, verbal, digital, and nonverbal forms.

Basic Communication Process

The fundamental sequence of steps involved in transmitting a message from a sender to a receiver, incorporating encoding, medium selection, decoding, and feedback.

Important

Having significant value, meaning, or influence, often affecting the outcome of a situation or the overall quality of something.