For Certain Controls, Such as Segregation of Duties, Documentary Evidence

question 23

Multiple Choice

For certain controls, such as segregation of duties, documentary evidence may not exist. An auditor would most likely test the procedures by:

• A)reperformance and corroboration.
• B)observation and inquiry.
• C)inspection and vouching.
• D)confirmation and recomputation.

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Definitions:

Predicted Values

The outcomes forecasted by a statistical model, which represent the model's estimation of the dependent variable based on independent variable(s).

Standardized Residuals

Residuals normalized to have a mean of zero and a standard deviation of one, used in regression analysis to identify outliers.

Regression Equation

An equation that estimates the relationship between a dependent variable and one or more independent variables.

Predicted Values

These are values estimated based on a model, representing what is likely to happen under certain conditions according to that model.