The Classification Balance-Related Audit Objective

question 14

Multiple Choice

The classification balance-related audit objective

• A) involves determining if items included on a client's listing are included in the correct general ledger accounts.
• B) is the counterpart to the management assertion of completeness.
• C) involves determining if items included on a client's listing are disclosed properly in the financial statements.
• D) involves tying in the account balances to the general ledger.

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Definitions:

Sample Size

The number of observations or data points collected in a statistical study, crucial for ensuring the representativeness and reliability of study findings.

Standard Error

A measure that quantifies the variation or dispersion of sampling distribution of a statistic, often used as an estimate of the reliability of a statistical estimate.

Sample Mean

The average value calculated from a sample of data, intended to estimate the mean of the entire population.

Standard Deviation

Standard Deviation measures the amount of variation or dispersion of a set of values, indicating how much the values in a dataset deviate from the mean.