Assume That the Audit Team Wishes to Determine the Extent

question 50

Multiple Choice

Assume that the audit team wishes to determine the extent to which a particular control policy was functioning as intended.Identifying applications of the control throughout the period under audit would be most closely related to which of the following steps in sampling?

• A)Determining the objective of sampling.
• B)Defining the characteristic of interest.
• C)Defining the population.
• D)Determining the sample size.

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Definitions:

Population Variance

The average of the squared differences from the mean for every individual in an entire population, quantifying the overall variation within that population.

Hypotheses Test

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.

Significance Level

The probability of rejecting the null hypothesis when it is true, used as a threshold in hypothesis testing.

Test Statistic

A standardized value derived from sample data during a hypothesis test that is used to make the decision about the null hypothesis.