Statistical Sampling Generally May Be Applied to Test Internal Control

question 82

Multiple Choice

Statistical sampling generally may be applied to test internal control when the client's internal control procedures:

• A)Depend primarily on appropriate segregation of duties.
• B)Are carefully reduced to writing and are included in client accounting manuals.
• C)Leave an audit trail in the form of evidence of compliance.
• D)Enable the detection of material fraud in the accounting records.

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Definitions:

Competency Perspective

An approach that emphasizes the skills, knowledge, and capabilities that enable an individual or organization to perform effectively.

Task-Oriented

Focused on completing specific jobs or duties efficiently rather than on broader relationship or personal development goals.

Environmental Conditions

The external factors including climate, geography, and natural resources that affect living organisms and human activities.

Implicit Leadership

The idea that leadership qualities are often unconsciously recognized and attributed by followers, beyond explicit leader actions or statements.