Which of the Following Statements Are True

question 105

Multiple Choice

Which of the following statements are true?

• A)The auditing standards require specific percentages be applied as benchmarks in setting planning materiality.
• B)For both private and publicly traded companies, the primary users of financial statements are the stockholders.
• C)Auditors rely heavily on their professional judgment in setting planning materiality
• D)Audit firms do not vary in the method they use to set planning materiality in the risk assessment phase.

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Definitions:

Sign Test

A non-parametric statistical test used to determine if there is a significant difference between paired observations.

Median Score

The median score is the middle value in a set of numbers arranged in ascending order, effectively dividing the dataset into two equal halves.

Level Of Significance

The threshold in hypothesis testing that determines if the null hypothesis can be rejected, commonly denoted by alpha (α).

Math Test

An examination designed to measure understanding, proficiency, and skills in mathematics.