Obtaining an Understanding of the Internal Control and Assessing Control

question 18

Multiple Choice

Obtaining an understanding of the internal control and assessing control risk:

• A)may be performed concurrently in an audit.
• B)needs to be documented only if the assessed level of control risk is less than high.
• C)is possible but not necessary in performing an audit.
• D)are necessarily sequential audit steps.

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Definitions:

Standard Deviation

A metric that calculates how much a dataset's values deviate or spread out from the average.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, expressed at a certain confidence level.

Mean

The mean of a collection of numbers, found by summing up all values and then dividing by the total count of those values.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.