Question

An auditor is testing internal control procedures that are evidenced on an entity's vouchers. To select the vouchers for testing, the auditor obtains random numbers between the first and last voucher number in the period. If a random number matches the number of avoided voucher, that voucher ordinarily should be replaced by another voucher in the random sample if the voucher?

1) constitutes a deviation.
2) has been properly voided.
3) cannot be located.
4) represents an immaterial dollar amount.

Answer 1

A voucher should be replaced in the auditor's random sample if it has been properly voided because it is not relevant to the analysis of the entity's current expenditures or controls.

Step-by-step explanation:

The subject of this question is Business. The auditor is testing internal control procedures related to vouchers.

When the auditor obtains random numbers between the first and last voucher number in the period if a random number matches the number of avoided vouchers, that voucher should ordinarily be replaced by another voucher in the random sample if it constitutes a deviation.

Therefore, the correct answer is option 1) which constitutes a deviation.

An auditor testing internal control procedures who encounters a voided voucher should replace that voucher if it has been properly voided. In auditing, a voided voucher is not a deviation from expected controls, thus it would not normally be included in a sample used to assess the current operation of a system. The correct response is that a voucher should be replaced in the random sample if it has been properly voided. A proper void indicates that the voucher is not to be included in any analysis of the entity's current operational expenditures or controls because it is no longer an active or relevant document.