Which of the Following Is the Best Way to Compensate

question 26

Multiple Choice

Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?

• A) Disclosing lack of segregation of duties to external auditors during the annual review.
• B) Replacing personnel every three or four years.
• C) Requiring accountants to pass a yearly background check.
• D) Allowing for greater management oversight of incompatible activities.

---

Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean.

Sample Size

The number of observations or data points collected in a study, which impacts the study’s ability to detect meaningful effects or differences.

Degrees of Freedom

The number of independent values or quantities which can vary in the calculation of a statistic.

Standard Error

A measure of the statistical accuracy of an estimate, often the standard deviation of the sampling distribution of a statistic.