A Retail Entity Uses Electronic Data Interchange (EDI) in Executing

Multiple Choice

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 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 assertions.