Which of the Following Is an Accurate Statement Relating to the Extent

question 52

Multiple Choice

Which of the following is an accurate statement relating to the extent of procedures?

• A) If an auditor wants a lower assessed control risk than the preliminary assessed control risk, the number of controls tested increases while the extent of the tests for each control decrease.
• B) The extent of testing depends on the frequency of the operation of the controls.
• C) All controls must be tested only at year-end.
• D) The frequency of testing is the same for both manual and computer controls.

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Definitions:

Sample Size

The total number of instances or replications incorporated in a statistical sampling.

Population Proportion

The fraction or percentage of the population that exhibits a specific attribute or characteristic.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, reflecting how the statistic varies from sample to sample.

Standard Error

An estimate of the standard deviation of the sampling distribution of a statistic, especially of the mean.