CPA · Question 23 · Area III: Performing Procedures
An auditor is testing the operating effectiveness of a control that requires the credit manager to approve all sales over $10,000. The auditor selects a sample of 50 sales over $10,000. The auditor finds that for 2 items, the credit manager's signature is missing, but the credit manager claims to have verbally approved them. How should the auditor classify these items?
Answer options:
As effective controls, provided the customer paid the invoice.
As deviations from the control.
As non-deviations, provided the auditor can verify the customer's credit limit was adequate.
As voided items, and replace them with new sample items.
78 questions · hints · full answers · grading
Expert