Which of the Following Tests of Control Most Likely Would

question 48

Multiple Choice

Which of the following tests of control most likely would help assure an auditor that goods shipped are properly billed? Checking that the client has:

• A)scanned the sales journal for sequential and unusual entries.
• B)examined shipping documents for matching sales invoices.
• C)compared the accounts receivable ledger to daily sales summaries.
• D)inspected unused sales invoices for consecutive pre-numbering.

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Definitions:

Stepwise Regression

A method of regression analysis in which the choice of predictive variables is carried out by an automatic procedure, often involving the selection of variables based on statistical criteria.

Independent Variables

Variables in statistical models that are manipulated or categorized to observe their effect on dependent variables.

Quantitative Predictor Variables

Variables that can be quantified and measured and are used to predict outcomes in statistical analyses.

Indicator Variables

Variables used in statistical models that take the value of 1 if a certain condition is met and 0 otherwise, often used to represent categorical data.