Which of the Following Statements Is Correct Regarding an Audit

question 20

Multiple Choice

Which of the following statements is correct regarding an audit team's documentation requirements for attributes sampling?

• A)The audit team's conclusions do not need to be documented unless they decide to rely on internal control at planned levels.
• B)The audit team should document information regarding the number of deviations and sample deviation rate,but not the allowance for sampling risk.
• C)The audit team's documentation should include information about the control environment,including an assessment of management's integrity.
• D)The audit team's documentation should include information regarding all steps of the sampling process and implications of the conclusions reached on internal control reliance and substantive procedures.

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Definitions:

Critical Value

A threshold in a statistical test that delineates the boundary for rejecting or not rejecting the null hypothesis.

Null Hypothesis

In statistical testing, the default hypothesis stating that there is no significant difference or effect.

Obtained Value

The specific result or measurement derived from experimental or observational data, essential for evaluating hypotheses or models.

Dependent-Samples T Test

A statistical procedure used to compare the means from two related samples or groups to see if there are significant differences between them.