As an In-Charge Auditor, You Are Reviewing a Summary of Control

question 27

Multiple Choice

As an in-charge auditor, you are reviewing a summary of control weaknesses in cash disbursement procedures. Which one of the following weaknesses, standing alone, should cause you the least concern?

• A)Checks are signed by only one person.
• B)Signed checks are distributed by the controller to approved payees.
• C)Treasurer fails to establish validity of names and addresses of check payees.
• D)Cash disbursements are made directly out of cash receipts.

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Definitions:

Test Statistic

A value calculated from sample data used to test a hypothesis against some criterion.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or the parameters in a statistical model.

Within-Treatments

Refers to the analysis or comparison of data points within the same group or condition in an experimental setting, to assess variability and effect.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often influencing the shape of the distribution.