Among Methods Used by Auditors in Gathering Evidence, What Are

question 72

Multiple Choice

Among methods used by auditors in gathering evidence, what are tests of control?

• A)Methods used to determine the operating effectiveness of the client's controls in preventing, or detecting and correcting, material misstatements at the assertion level.
• B)Methods designed to detect material misstatements at the assertion level.
• C)Methods used to gain an understanding of a client and its industry for the purpose of identifying risk of material misstatement.
• D)Methods used in the evaluation of financial information by studying plausible relationships among both financial and non-financial data.

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Definitions:

Confidence Level

The degree of certainty or probability with which a confidence interval is estimated to contain the true population parameter.

Confidence Interval

A continuum of values, gathered from sample statistics, predicted to secure the value of an unknown numerical characteristic in the population.

Desired Level

A specific goal or benchmark that one aims to achieve or maintain.

Population Mean

The average value of all the items in a population.