Because of the Importance of Tests of Controls and Substantive

question 9

Multiple Choice

Because of the importance of tests of controls and substantive tests of transactions for acquisitions and cash disbursements, it is common in this audit area to use

• A) block sampling.
• B) variables sampling.
• C) attributes sampling.
• D) probability proportional to size sampling.

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Definitions:

Instrumentality

The perception that a particular level of performance will result in the attainment of desired outcomes or rewards.

Work-related Outcomes

Consequences or results that arise in a professional environment, impacting employee performance, satisfaction, or company achievements.

Successful Performance

Denotes achieving or exceeding the set goals, objectives, or standards in a given task, project, or organizational achievement, often measured against predetermined benchmarks.

Externally Imposed Goals

Objectives set by outside entities or stakeholders, not originating from within the organization itself, that influence its direction and strategies.