ZyCo Has Recently Converted to a New Online Accounts Payable

question 72

Multiple Choice

ZyCo has recently converted to a new online accounts payable system.To test that all vendor balances have been converted to the vendor master file (completeness) ,the auditor would

• A)conduct cutoff tests for receiving reports and vendor invoices.
• B)on a test basis,agree vendor file details for each vendor from the new (online)system to the old (batch)system.
• C)on a test basis,agree vendor file details for each vendor from the old (batch)system to the new (online)system.
• D)conduct tests of programs to verify that programs in the new systems are functioning as designed.

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Definitions:

Population Parameter

A numerical value that describes a characteristic of an entire population.

Sample Statistic

A sample characteristic, such as a sample mean x, a sample standard deviation s, a sample proportion p, and so on. The value of the sample statistic is used to estimate the value of the corresponding population parameter.

Simple Random Sample

A segment of a statistical population where every individual in the segment is equally likely to be selected.

Infinite Population

A population size that is so large it is considered limitless for practical statistical purposes, often used in theoretical models.