A Retailing Entity Uses the Internet to Execute and Record

Multiple Choice

A retailing entity uses the Internet to execute and record its purchase transactions. The entity's auditor recognizes that the documentation of details of transactions will be retained for only a short period of time. To compensate for this limitation, the auditor most likely would:

A) Compare a sample of paid vendors' invoices to the receiving records at year-end.
B) Plan for a large measure of tolerable misstatement in substantive tests.
C) Perform tests several times during the year, rather than only at year-end.
D) Increase the sample of transactions to be selected for cutoff tests.