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Frank was engaged to audit the financial statements of June Corporation for the year ended December 31, 2018. Frank is currently planning his audit of
Frank was engaged to audit the financial statements of June Corporation for the year ended December 31, 2018. Frank is currently planning his audit of June Corporation's investments. June's investments are held at ABC Bank. Frank has received an account statement and a returned audit confirmation letter, signed and marked correct, directly from ABC Bank. The account statement lists all of June Corporation's holdings at December 31, 2018, and provides a detail of all transactions that took place during 2018. Which of the following is the best method of verifying the accuracy of recorded dividend income? Comparing recorded dividends with amounts appearing on federal information Form 1099. Performing analytical procedures and statistical sampling. Comparing recorded dividends with a publicly-available source such as Google Finance. Calling ABC Bank and asking them to verify that dividend income as listed on the signed confirmation is accurate. Ace Golf Balls would like to be able to advertise that their golf ball travels 5 yards further than Best Golf Balls. Ace decided to support this claim by running a test whereby many golfers would hit each ball, the distances would be measured, and the results would be tallied to see the difference in average distance. Which of the following would be an example of nonsampling risk in this process? The person determining how large the sample size of golfers needed referred to the incorrect sample size chart and therefore drew a sample size that was too small. The sample selected consisted mostly of golfers of average skill, whereas the population of golfers being considered includes golfers of all levels of ability. No left-handed golfers were selected in the sample, whereas an average of 10% of golfers are left-handed. The person recording the measurements of the distance travelled by the golf ball accidentally measured the distance travelled inaccurately. Julie is an accountant at Company S. Julie is preparing an invoice in the Sales Module of Company S' ERP system for a sale to a customer in the amount of $10 million. When Julie enters the transaction, a dialogue box appears that says "You have attempted to enter a sale of $10 million, which is abnormally large for our business. If the sale amount is correct, click "OK". Otherwise, click Edit and re-enter the data." This is an example of which type of control? An Input control, which is an example of an IT General Control An Input control, which is an example of an IT Automated Application Control A Computer Operations control, which is an example of an IT General Control A Computer Operations control, which is an example of an IT Automated Application Control
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