Which One of the Following Analytical Procedures Would Be Most

question 45

Multiple Choice

Which one of the following analytical procedures would be most helpful in alerting the auditor to the possibility of obsolete inventory?

• A) Compare current year manufacturing costs with previous years' costs.
• B) Compare gross margin percentage with previous years' percentages.
• C) Compare inventory turnover ratio with previous years' ratios.
• D) Compare unit costs of inventory with previous years' costs.

Understand the concepts of Type I and Type II errors and how changing levels of significance (α) and sample sizes (n) affect these errors.

Understand the definition, calculation, and interpretation of a test's power and its relationship to Type II errors.

Demonstrate the ability to calculate and interpret confidence intervals in the context of hypothesis testing.

Understand the relationship between sample size, significance level, and the power of a test.

---

Definitions:

Program Scan

The process by which a control system or PLC cyclically reads its inputs, executes its logic, and updates its outputs, typically in a continuous loop.

Immediate Input

Immediate input in automation and computing refers to input data that is processed or utilized instantly without delay.

Output Instructions

Commands within a programming language or PLC code that direct the system to perform specific actions or control external devices based on processed data or logic conditions.