The Audit Evidence Gathering Technique Known as Computation or Recalculation

question 7

Multiple Choice

The audit evidence gathering technique known as computation or recalculation refers to:

• A)Sending letters to independent third parties.
• B)Counting inventory.
• C)Recalculating depreciation.
• D)Checking prices as per the price list.

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Definitions:

Wilcoxon Rank Sum Test

A nonparametric statistical test used to compare two independent samples to assess whether their populations differ significantly.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha.

Weekly Salaries

The total amount of money earned by an employee for work done during a standard week.

Employees

Individuals who work for another person or organization in exchange for compensation.