Auditors Look for Relationships That Do Not Make Sense as Indicators

question 21

True/False

Auditors look for relationships that do not make sense as indicators of problems in the accounts and use such indicators to plan further audit work.

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Definitions:

Stem

In 'stem-and-leaf' displays, the 'stem' represents the leading digits of the numbers, providing a quick overview of data distribution while retaining the original data values.

Categorical Variables

Non-numeric variables that represent categories or groups.

Pie Charts

A type of graph in which a circle is divided into sectors that each represent a proportion of the whole, often used to visualize the relative proportions of different categories.

Bar Graphs

A visual representation of data using bars of varying heights or lengths to show the values of different categories.