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Parallel Simulation Is Used Primarily to Test Internal Controls Over

question 75

True/False

Parallel simulation is used primarily to test internal controls over the client's IT systems, whereas the test data approach is used primarily for substantive testing.


Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.

Acceptance Region

In hypothesis testing, this is the range of values for which the null hypothesis is not rejected.

Not Statistically Significant

A term indicating that the observed difference or relationship in data could have occurred by chance and does not provide strong evidence against the null hypothesis.

Test Statistic

A numerical value derived from sample data that measures the degree of conformity with a null hypothesis in statistical hypothesis testing.

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