While Conducting an Audit of a Third Party's Web-Based Payment

question 73

Multiple Choice

While conducting an audit of a third party's Web-based payment processor, an internal auditor discovers that a programming error allows customers to create multiple accounts for a single mailing address. Management agrees to correct the program and notify customers with multiple accounts that the accounts will be consolidated. Which of the following actions should the auditor take? 1. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated. 2. Evaluate the adequacy and effectiveness of the corrective action proposed by management. 3. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated. 4. Submit management's plan of action to the external auditors for additional review.

• A) 1 and 2
• B) 1 and 4
• C) 2 and 3
• D) 3 and 4

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Definitions:

Standard Error

A measure of the variability of a statistic from sample to sample, often used to quantify the accuracy of a sample mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, representing how spread out the values are from the mean.

Sample Means

The average values calculated from samples drawn from a population; used in inferential statistics as estimates of the population mean.

Population Mean

The average value of a characteristic in the entire population being studied.