In Describing the Cycle Approach to Segmenting an Audit, Which

question 37

Multiple Choice

In describing the cycle approach to segmenting an audit, which of the following statements is NOT true?

• A) All general ledger accounts and journals are included at least once.
• B) The 'inventory and warehousing' cycle may be audited at any time during the engagement since it is unrelated to the other cycles.
• C) Some journals and general ledger accounts are included in more than one cycle.
• D) The 'capital acquisition and repayment' cycle is closely related to the 'acquisition of goods and services and payment' cycle.

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Definitions:

Lurking Variable

A variable that is not directly measured or observed but can affect the relationship between variables of interest in a study.

Age

The length of time that an individual has lived or a thing has existed, typically expressed in years.

Standard Deviation

An indicator of the degree of spread or variability among a set of figures, showing how much the values differ from the average.

Mean Test Score

The average score obtained from a group of tests or examinations.