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.

---

Definitions:

Odd-even Reliability

A measure of internal consistency reliability where a test is split into two parts (odd and even items) to assess the consistency of results across these halves.

Parallel Form Reliability

The consistency of test scores across different versions of a test designed to be equivalent in terms of content and difficulty level.

Parallel Form Reliability

Refers to the extent to which two versions of a test yield similar results, assessing the same skills or constructs under similar conditions.

Content Validity

The extent to which a test measures all aspects of the concept or constructs it intends to measure, ensuring the test is representative of all facets of the subject.