Which of the Following Is a Question That the Auditor

question 2

Multiple Choice

Which of the following is a question that the auditor would expect to find on the production process section of an internal control questionnaire?

• A)Are vendors' invoices for raw materials approved for payment by an employee who is independent of the cash disbursements function?
• B)Are signed checks for the purchase of raw materials mailed directly after signing without being returned to the person who authorized the invoice processing?
• C)Are all releases by storekeepers of raw materials from storage based on approved requisition documents?
• D)Are details of individual disbursements for raw materials balanced with the total to be posted to the appropriate general ledger account?

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Definitions:

Type II Error

Occurs when a statistical test fails to reject a false null hypothesis, meaning it wrongly indicates there is no effect when one exists.

Standard Deviation

A measure of the dispersion or spread of a set of values, indicating how much the values in a data set vary from the mean.

Sample Size

The number of observations or subjects used in a study or sampled from a larger population for the purpose of statistical analysis.

Characteristic Curve

In statistics, it often refers to a graph that shows the relationship between the probability of a given outcome and different levels of a predictor variable.