Which of the Following Is an Accurate Statement Regarding Audit

question 93

Multiple Choice

Which of the following is an accurate statement regarding audit documentation review?

• A) The audit partner must review the work of the least experienced auditor in more detail than the work of the audit supervisor.
• B) The audit senior must review all audit documentation.
• C) For larger audits, it is common to have the financial statements and the entire set of audit files reviewed by someone who has not participated in the audit, but is a member of the audit firm doing the audit.
• D) Checklists can never be used to verify that all financial statement disclosures have been made.

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Definitions:

Pearson Correlation

A statistical coefficient expressing the degree of linear relationship between two variables, measured on a scale from -1 to 1.

Ranking Data

A method of organizing data by assigning an ordinal or rank order to different values based on their size or importance.

Sample Spearman

Sample Spearman refers to the computation of Spearman's rank correlation coefficient on a sample data set to assess the monotonic relationship between two variables.

Rank Coefficient

A statistical measure that evaluates the strength and direction of a relationship between two ranked variables.