The Person in Charge of Authorizing Credit to Customers Does

question 50

Multiple Choice

The person in charge of authorizing credit to customers does not properly understand what constitutes a credit risk. This is an example of:

• A)A material weakness.
• B)A design deficiency.
• C)A deficiency in operation.
• D)This is not an internal control deficiency.

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Definitions:

Measures of Dispersion

Statistical calculations that describe the spread or variability among a set of numerical data.

Measures of Correlation

Statistical techniques used to determine the degree to which two variables are related, indicating how changes in one variable are associated with changes in another.

Variance

A measure of the extent to which a set of scores vary on either side of their mean value. The square root of variance gives the standard deviation.

Descriptive Statistics

Descriptive statistics involve statistical techniques that summarize or describe the main features of a collection of data, including measures like mean, median, and mode.