A Common Comparison Occurs When the Auditor Calculates the Expected

question 116

Multiple Choice

A common comparison occurs when the auditor calculates the expected balance and compares it with the actual balance.The auditor's expected account balance may be determined by:

• A) using ABS data.
• B) using industry standards.
• C) relating it to some other balance sheet or income statement account or accounts.
• D) inquiry of client.

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Definitions:

Sample Weigh-Ins

Occasions when samples, such as those in research or competitions, are weighed to ensure they meet certain criteria or for data collection purposes.

Known Variance

A statistical term referring to the situation where the variance of a population is a known quantity.

TCritical One-Tail

A value on the t-distribution that is used in a one-tailed t-test to determine the statistical significance of a result.

P(T>=t) One-Tail

The probability that the test statistic T is greater than or equal to some value t, assuming the null hypothesis, used in one-tailed tests.