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When planning revenue audit for an e-commerce company with very high transaction volume, the auditor would BEST:
AIssue a disclaimer of opinion
BCombine ToCs over the automated revenue cycle with data-analytics ToD on the full population
CConfirm 100% of transactions with customers
DSample 10 transactions and conclude
Answer & Solution
Correct answer: C. Confirm 100% of transactions with customers
1. Volume + automation demand controls-based testing and population-level analytics.
2. Confirming 100% is impractical; disclaimer is unwarranted; 10-transaction sample is grossly insufficient.
3. Combining ToCs (test of controls) and ToDs (test of details) via CAATs is the proportionate approach.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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