Which of the Following Is Most Likely to Be Considered

question 53

Multiple Choice

Which of the following is most likely to be considered a risk assessment procedure relating to internal control?

• A)Confirm accounts receivable.
• B)Perform a test of a control relating to payroll.
• C)Take test counts of the year-end inventory.
• D)Trace a transaction through the information system relevant to financial reporting.

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Definitions:

Production Process

The sequence of operations or procedures used to create a product or service.

Type I Error

A statistical mistake made when a true null hypothesis is incorrectly rejected.

Type II Error

A statistical mistake that occurs when a false null hypothesis is not rejected, erroneously indicating no effect or difference when one does exist.

True Average Age

The actual mean age of a group or population, accurately representing the central tendency without bias.