Which of the Following Audits Can Be Regarded as Generally

question 35

Multiple Choice

Which of the following audits can be regarded as generally being a compliance audit?

• A)IRS agents' examinations of taxpayer returns
• B)GAO auditor's evaluation of the computer operations of governmental units
• C)An internal auditor's review of a company's payroll authorization procedures
• D)A CPA firm's audit of a public company

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Definitions:

Type I Error

The faulted rejection of an authentic null hypothesis, also termed as a "false positive."

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis, also known as a "false negative" result.

Statistical Outcome

The result of any single observation or measurement regarding a statistical experiment.

Validity

The extent to which a concept, conclusion or measurement is well-founded and likely corresponds accurately to the real world.