Silka Is in the Process of Performing an Audit

question 31

Multiple Choice

Silka is in the process of performing an audit. During the audit, Silka decided to change materiality. A valid reason for this would be

• A) a new user of the financial statemens was identified.
• B) a fraud was discovered in the accounts payable section.
• C) materiality required the auditors to perform too many tests.
• D) too many errors were found during testing.

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Definitions:

Correlation Coefficient

A numeric metric showing how much two variables move in relation to each other.

Alcohol Consumption

The drinking of alcoholic beverages and the societal, health, and personal impacts it may have.

Correlation

A statistical measure that expresses the extent to which two variables change together, but does not imply causation.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.