Auditing by Testing Automated Internal Controls and Account Balances Electronically

question 7

Multiple Choice

Auditing by testing automated internal controls and account balances electronically, generally because effective general controls exist, is known as

• A) auditing through the computer.
• B) auditing around the computer.
• C) embedded audit module approach.
• D) parallel simulation testing.

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Definitions:

Sample Size

The number of observations or data points collected in a statistical study.

Preliminary Sample

An initial sample drawn from a population, often used to test procedures or make preliminary estimates before a larger study.

Interval Estimate

An estimate of a population parameter that provides a range of values within which the parameter is expected to lie, often associated with a specific confidence level.

Estimated σ

Approximation of the standard deviation (σ), a measure of the dispersion or variation of a distribution.