As One of the Year-End Audit Procedures,the Auditor Instructed the Client's

question 46

Multiple Choice

As one of the year-end audit procedures,the auditor instructed the client's personnel to prepare a standard bank confirmation request for a bank account that had been closed during the year.After the client's treasurer had signed the request,it was mailed to the bank by the assistant treasurer.What is the major flaw in this audit procedure?

• A) The confirmation request was signed by the treasurer.
• B) Sending the request was meaningless because the account was closed before the year-end.
• C) The request was mailed by the assistant treasurer.
• D) The CPA did not sign the confirmation request before it was mailed.

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Definitions:

Value Of T

The value of t, often found in t-tests, quantifies the difference between an observed sample mean and its hypothesized population mean value, measured in terms of standard errors.

Degrees For Freedom

The number of independent values in a statistical calculation that can vary without violating any given constraints.

T-Distribution

A probability distribution that is symmetric and bell-shaped, used particularly for small sample sizes or unknown population standard deviations; synonymous with Student T Distribution but demands a new definition.

Sample Mean

The average of all numerical values in a sample subset of a population, used in statistics to estimate the population mean.