The External Auditors Might Consider the Procedures Performed by the Internal

question 19

Multiple Choice

The external auditors might consider the procedures performed by the internal auditors because:

• A)They are employees whose work must be reviewed during substantive testing.
• B)They are employees whose work might affect the external auditors' work.
• C)Their work impacts upon the cost/benefit tradeoff in evaluating inherent limitations.
• D)Their degree of independence may be inferred by the nature of their work.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, which can be used to make inferences about a population.

Central Limit Theorem

A theorem that enables one to use the normal probability distribution to approximate the sampling distribution of x whenever the sample size is large.

Infinite Population

A hypothetical population of unlimited size, often used in statistical modeling to simplify analysis.

Sample Mean

The average value calculated from a sample of a population.