In Determining the Extent of Reliance to Be Placed on Internal

question 99

Multiple Choice

In determining the extent of reliance to be placed on internal controls, the auditor considers:

• A) effectiveness of the internal controls.
• B) assessed level of control risk.
• C) the costs of increased tests of controls.
• D) all of the above

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together.

Measure Of Dispersion

An indication of how spread out the values of a dataset are, which can include range, variance, or standard deviation.

Standard Deviation

A statistical measure of the dispersion or variability in a set of values, indicating how much the values deviate from the mean of the set.

Standard Deviation

A measure of the dispersion or spread in a set of data; it shows how much variation there is from the average.