Regardless of the Assessed Level of Control Risk, an Auditor

question 593

Multiple Choice

Regardless of the assessed level of control risk, an auditor would perform some:

• A) Tests of controls to determine the effectiveness of internal control.
• B) Analytical procedures to verify the design of internal control.
• C) Substantive tests to restrict detection risk for significant transaction classes.
• D) Dual purpose tests to evaluate both the risk of monetary misstatement and preliminary control risk.

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Definitions:

ANCOVA

Analysis of Covariance, a statistical technique that combines ANOVA and regression to analyze the impact of one or more categorical independent variables on a continuous dependent variable, while controlling for one or more covariates.

Dependent Variable

The outcome variable or the predicted variable in a regression equation.

Repeated-Measures ANOVA

A statistical technique used to compare means across more than two conditions or times, with the same subjects participating in all conditions.

ANCOVA

Stands for Analysis of Covariance, a statistical technique that blends ANOVA and regression to evaluate whether the means of a dependent variable are equal across groups, adjusting for the effects of other variables.