Which Statement Is True Concerning the Documentation of Internal Control

question 43

Multiple Choice

Which statement is true concerning the documentation of internal control?

• A) Documentation should be sufficient to support the design and operating effectiveness of internal controls.
• B) Documentation requirements are standardized by the PCAOB.
• C) Documentation of disbursements require paper and electronic documentation.
• D) Documentation of all transaction controls should be tested on an annual basis.

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Definitions:

Wilcoxon Rank-sum Test

A nonparametric statistical test used to compare two independent samples to determine if they come from the same population or not, based on rank sums.

Wilcoxon Rank Sum Test

A non-parametric statistical test used to compare two independent samples to assess whether their populations have identical distribution.

Sign Test

A non-parametric statistical test used to assess the difference between matched pairs of samples when the specific data measurement scale does not meet the requirements for parametric testing.

Binomial Tables

Pre-calculated tables used to find the probability of observing a certain number of successes in a fixed number of binary experiments.