When Testing the Operating Effectiveness of Controls Pertaining to the Function

question 23

Multiple Choice

When testing the operating effectiveness of controls pertaining to the function of the recording of sales, the auditor may vouch recorded sales to supporting documents. The vouching of recorded sales to supporting documents pertains to the audit objective of

• A) existence or occurrence.
• B) rights and obligations.
• C) accuracy, valuation and allocation.
• D) all of the above

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Definitions:

Adapt

The process of adjusting or changing to become suitable for a new environment or conditions.

Intense Stimuli

External or internal factors that have a strong impact on the sensory or psychological experience of an individual, often leading to a significant reaction or response.

Signal Detection

A theory and method for quantifying the ability to discern between information-bearing patterns and random patterns that distract from the information.

Naysayers

Individuals who are often negative or skeptical about ideas and refuse to believe that something might be successful or positive.