Which of the Following Courses of Action Is an Auditor

question 29

Multiple Choice

Which of the following courses of action is an auditor most likely to follow in designing a sampling plan for cash disbursements if the auditor is aware of several unusually large cash disbursements?

• A)Increase the sample size to reduce the effect of the unusually large disbursements.
• B)Continue to draw new samples until all the unusually large disbursements are included in the sample.
• C)Set the tolerable deviation rate at a lower level than originally planned.
• D)Stratify the cash disbursements population so that all of the unusually large disbursements are selected.

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Definitions:

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The cost per barrel at which crude oil is bought and sold in the global market.

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The process of increasing the quantity taken from resources or datasets, often aiming for higher yields or more information.

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Diamonds mined in a war zone and sold to finance an insurgency, an invading army's war efforts, or a warlord's activity.

Diamonds

Gemstones consisting of a crystalline form of carbon, often used in jewelry for adornment and considered valuable due to their rarity and physical properties.