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NEW QUESTION: 1

A. Option C
B. Option A
C. Option D
D. Option B
Answer: C

NEW QUESTION: 2

A. Option C
B. Option A
C. Option D
D. Option B
Answer: A

NEW QUESTION: 3
Which of the following courses of action would an auditor most likely follow in planning a sample of 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 appear in the sample.
C. Set the tolerable rate of deviation at a lower level than originally planned.
D. Stratify the cash disbursements population so that the unusually large disbursements are selected.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. Stratification involves the grouping of transactions sharing some characteristic (such
as recorded amounts). The goal of stratification is to ensure selection of items for which potential
misstatements may individually equal or exceed tolerable misstatement. Thus, the auditor should stratify
the sample such that the unusually large transactions are selected.
Choice "A" is incorrect. The tolerable rate of deviation refers to test of controls, rather than substantive
tests.
Choice "C" is incorrect. Certain items should be individually examined; for example, the auditor should
examine those items for which potential misstatements may individually equal or exceed tolerable
misstatement. Stratifying the sample is more efficient than increasing the sample size.
Choice "D" is incorrect. By stratifying the sample, the auditor can examine each of the unusual
transactions and also reduce the sample size.

NEW QUESTION: 4
Which option represents an organizational change objection?
A. How can we justify the fact that it is far more expensive than upgrading our existing solution?
B. How can a collaboration architecture help reduce our operating expenses?
C. We are expanding and acquiring new business. This is the wrong time to switch to collaboration.
D. A migration is impossible without high costs or operational fallouts.
Answer: C
Explanation:
Explanation/Reference:
answer is to the point.