The Appropriate Assumption to Make Regarding the Overall Percent of Error

question 31

Multiple Choice

The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

• A)determined using random number tables.
• B)set after a quantitative analysis of client's internal control system.
• C)based on the auditor's personal judgment in the circumstances.
• D)based on statistical analysis using confidence limits.

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Definitions:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Positive Correlation

A relationship between two variables where they move in the same direction, indicating that as one variable increases, so does the other.

Criterion-related Validity

The extent to which a test successfully measures an operational variable and can predict a criterion or outcome.

Validity

The extent to which a test, measurement, or research accurately reflects or assesses the specific concept it is intended to measure.