An Internal Auditor Is Trying to Assess Control Risk and the Effectiveness

question 82

Multiple Choice

An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?

• A) Interviewing the organization's employees.
• B) Observing the organization's operations.
• C) Reading the board's minutes.
• D) Inspecting manuals and documents.

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Definitions:

Degrees of Freedom

The number of independent pieces of information used to estimate a parameter or calculate a statistic, often linked to the sample size.

P Value

The probability of obtaining test results at least as extreme as the observed results, assuming that the null hypothesis is true.

Statistical Power

Probability of rejecting the null hypothesis when the alternative hypothesis is true.