Question: A retail entity uses electronic data interchange (EDI) in executing and recording most of its purchase transactions. The entitys auditor recognized that the documentation of

A retail entity uses electronic data interchange (EDI) in executing and recording most of its purchase transactions.

The entity’s auditor recognized that the documentation of the transactions will be retained for only a short period of time. To compensate for this limitation, the auditor most likely would

a. Increase the sample of EDI transactions to be selected for cutoff tests.

b. Perform tests several times during the year, rather than only at year-end.

c. Plan to make a 100% count of the entity’s inventory at or near the year-end.

d. Decrease the assessed level of control risk for the existence or occurrence assertion.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Fraud Examination Questions!

A retail entity uses electronic data interchange (EDI) in executing and recording most of its purchase transactions. The entitys auditor recognized that the documentation of the transactions will be...

82. A retail entity uses electronic data interchange (EDI) in executing and recording most of its purchase transactions. The entitys auditor recognized that the documentation of the transactions will...

A retail entity uses electronic data interchange ( EDI ) in executing and recording most of its purchase transactions. The entity's auditor recognizes that the documentation of the transactions will...

A retail entity uses electronic data interchange ( EDI ) in executing and recording most of its purchase transactions. The entity s auditor recognizes that the documentation of the transactions will...

PLEASE help write an Accounting "Business Memo" based off this case study of Impcorp Foods I put down below. HERES THE QUESTIONS TO ANSWER FROM THE ARTICLE BELOW: 1) a summary, containing the firms...

I was wondering if Scenerio 1 activies #1-4 from this article could be answered. Need Help. CASES: CASE 1 AUDITING ENTITY-LEVEL CONTROLS Learning Objectives Describe why entity-level controls are a...

Express each quantity in a more appropriate unit. There may be more than one acceptable answer. a. 0.000000345 m3 b. 47,000,000 mm3 c. 0.00665 L

An electron, starting from rest, accelerates through a potential difference of 418 V. What is the final de Broglie wavelength of the electron, assuming that its final speed is much less than the...

Social security benefits are _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . non - statutory benefits defined benefit plan defined contribution plan contributory benefits

Inge Inspections Inc. specializes in determining whether a building or house's drainpipes are properly tied into the city's sewer system. The company pours colored chemical through the pipes and...