In Evaluating Internal Control, the Auditor Is Basically Concerned That

question 74

Multiple Choice

In evaluating internal control, the auditor is basically concerned that the system provides reasonable assurance that:

• A)operational efficiency has been achieved in accordance with management plans.
• B)material misstatements have been prevented, or detected and corrected.
• C)controls have not been circumvented by collusion.
• D)management cannot override the system.

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Definitions:

Statistical Technique

A methodological approach used in statistics for collecting, analyzing, interpreting, and presenting data.

Frozen TV Dinner

A prepackaged meal that comes frozen and is designed to be heated in the oven or microwave before eating.

Independent Populations

Refers to groups in which the members of one group do not affect the members of another group and vice versa.

Significance Level

A rephrased definition for Level of Significance; it is the probability threshold below which the observed data is considered sufficiently unlikely under the null hypothesis, leading to its rejection.