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Auditing: Sampling of controls or not

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Indicate which of the following audit procedures, used as tests of controls, do not involve audit sampling.

1. Observing and evaluating segregation of duties.
2. Testing of whether sales invoices are supported by authorized customer orders and shipping documents.
3. Reviewing client's procedures for accounting for the numerical sequence of shipping documents.
4. Examining sales orders for proper credit approval.
5. Recomputing the information on copies of sales invoices.
6. Comparing the average days outstanding in accounts receivable with industry averages.

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Solution Summary

In six auditing procedures, three involve sampling and three do not. Solutions indicates which is which.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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