An Auditor Plans to Examine a Sample of 40 Canceled

Multiple Choice

An auditor plans to examine a sample of 40 canceled checks for a countersignature which is prescribed in the client's control procedures manual.Two of the checks in sample cannot be located by the company or the auditor.The auditor would most likely:

A) treat the missing checks as a deviation when evaluating the results of the sample.
B) draw a conclusion on a sample size of 38.
C) substitute two more checks to get to a sample size of 40.
D) recalculate the sample excluding the original 40 checks.