An Auditor Is Examining an Important Internal Control in His

question 31

Multiple Choice

An auditor is examining an important internal control in his audit of ABC Company.Because the account balance affected by this control is highly susceptible to fraud,she will reject the sample if even one deviation is discovered.What type of sampling plan should she use

• A)Attributes sampling.
• B)Discovery sampling.
• C)Sequential sampling.
• D)Statistical sampling.

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Definitions:

False Alarm

An event in which a warning or alert is given, but the anticipated threat or danger does not actually occur.

Signal Detection Task

A psychological test that measures the ability to differentiate between information-bearing patterns (signals) and random patterns that distract from the information (noise).

Hit

In the context of data or searches, a hit refers to a successful match or retrieval of information that corresponds to a specific query.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference (JND).