Which of the Following Audit Procedures Is the Most Effective

question 78

Multiple Choice

Which of the following audit procedures is the most effective when testing sales for understatement?

• A)Scrutinize the accounts receivable aged trial balance.
• B)Confirm a sample of recorded accounts receivable.
• C)Trace a sample of shipping documents to sales invoices recorded in the sales journal.
• D)Vouch a sample of recorded sales from the sales journal to shipping documents.

Grasp the concept of sampling distribution and the importance of standard error.

Know how data skewness impacts statistical analysis and which measures of central tendency are most appropriate.

Distinguish between independent and dependent samples and appropriate statistical tests for each.

Understand the principles of inferential statistics, including probability under the normal curve, and sample size implications.

---

Definitions:

Stress Reactions

The physical, emotional, and behavioral responses of individuals to stressors in their environment.

Workaholics

Individuals who compulsively work long hours, often to the detriment of their personal life and health.

Heavy Workloads

A situation where the amount of work assigned exceeds the normal capacity of an individual or group, leading to stress and potential burnout.

Long Work Hours

Extended periods of working time that exceed the standard workday, often leading to stress and health issues.