Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. min li is auditing rrr services inc. and has desig

Min Li is auditing RRR Services Inc. and has designed the following tests: 1....

60.1K

Verified Solution

Question

Accounting

Min Li is auditing RRR Services Inc. and has designed the following tests:

1. Select 150 cancelled cheques (8 percent of the total number of cheques) at random from the cash disbursement journal for the year.

2. Ignore any cheques with a recorded value of less than $1,000.

3. Examine the cancelled cheques to verify if they have been approved by the accounting supervisor (indicated by her initials on the cheque).

4. Compare the percentage of cheques (of the sample) that lacks the accounting supervisors initials to a predetermined percentage of 5 percent.

Which of the following statements accurately describe this test?(Several choices may be correct.)

A - Min has designed a substantive test of details

B - Min has designed a test of control

C - The results of the test can be used to project a value for the entire population

D - The attribute being tested is proper approval

E - If the percentage of cheques lacking approval is greater than 5 percent, the auditor will conclude the control is operating effectively

F - The results of the test cannot be used to project a value for the entire population

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

General Management
1.2K views

Innovation is a term that is frequently heard in the business world today. Respond to the following...

Biology
1.2K views

labeled A A

Algebra
1.2K views

Shown is the graph of a parabola y f x with vertex 2 1 What...

Algebra
1.2K views

01)1574Select one:8101)Functions:Question 7What is the y-intercept of the function?61O (2,-2)O (0,4)O (0,2)(2,0)

Algebra
1.2K views

1 3 Long Division Divide 1 a 11a 13a 27 a 10 6 A a...

Accounting
1.2K views

Lucia Company has set the following standard cost per unit for direct materials and direct...

Accounting
1.2K views

Record the entry to close the owner's withdrawals account ...

Accounting
1.2K views

On December 31, 2017, Coronado Company borrowed $65,652 from Paris Bank, signing a 5-year, $115,700...

Accounting
1.2K views

NAME: SECTION: PROFESSOR: SE Problem #3 Preparing the Closing Entries Pra Ide Listed below are...

Accounting
1.2K views

What role does multiplicity analysis play in database design? describe one real world business example...

Accounting
1.2K views

On January 1, 2021, Warner Corporation has 1,000 common shares outstanding. On February 15, 2021,...

Finance
1.2K views

Financial markets bring together ______ and _______. a. Households; banks b. firms; households c. borrowers;...