Which of the Following Statements Is True

question 31

Multiple Choice

Which of the following statements is true?

• A)Testing of controls is the most cost efficient way of designing each audit.
• B)Substantive testing is the most cost efficient way of designing each audit.
• C)As the work of testing of controls increases, the cost of substantive work increases.
• D)There is a point where further testing of controls becomes more expensive than performing substantive test.

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Definitions:

Margin of Error

A measure of the accuracy of a poll or survey, reflecting the extent to which the results could differ from the true population value.

Point Estimate

A single value or statistic that serves as the best guess or estimate of a population parameter.

Population Mean

Population mean is the average value of all elements in a complete set or population.

Point Estimator

A single value or statistic calculated from sample data that is used to estimate a population parameter.