Which of the Following Situations Is Not the Result of a Weakness

question 2

Short Answer

Which of the following situations is not the result of a weakness in or lack of internal controls?
A. Financial statements are misstated because individuals were able to update financial information beyond that needed to perform their job functions.
B. A sales order is placed on back-order, but is never filled or canceled.
C. Earnings per share are misstated due to a spreadsheet error.
D. The vendor bills an amount different than the amount entered on the purchase order.

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Definitions:

Quantitative Data

Data that can be quantified and verified, and is amenable to statistical manipulation, typically involving numerical values.

Parametric Statistical Test

Statistical tests based on assumptions about the population parameters and the distribution of the sample data.

Sample Size

The number of observations or data points collected in a sample from the larger population for the purpose of statistical analysis.

Nonparametric Methods

Statistical methods that do not rely on data belonging to any particular distribution, often used when data doesn't meet the assumptions required for parametric testing.