The Overall Objective in the Audit of the Sales and Collection

question 114

Multiple Choice

The overall objective in the audit of the sales and collection cycle is to evaluate whether

• A)the sales account and the accounts receivable account are free of errors.
• B)the sales account and the accounts receivable account are free of material errors.
• C)the sales account and the accounts receivable account are presented fairly in accordance with an applicable financial reporting framework.
• D)the account balances affected by the cycle are fairly presented in accordance with an applicable financial reporting framework.

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Definitions:

Class Size SS

An educational metric that refers to the number of students enrolled in a particular class or course.

ANOVA Table

A statistical table used in analysis of variance that summarizes the sources of variability in the data, helping to determine whether differences between groups are significant.

F-ratio

A statistic used to compare the variances among group means in an analysis of variance (ANOVA) test, determining if any significant differences exist.

P-value

A statistical measure that indicates the probability of an observed data occurring under a particular assumption or model usually associated with hypothesis testing.