According to the COSO Definition of Safeguarding of Assets

question 13

Multiple Choice

According to the COSO definition of safeguarding of assets

• A) Controls over financial reporting are effective if they provide reasonable assurance that asset losses will not occur.
• B) Controls over financial reporting are effective if they provide reasonable assurance that losses are properly reflected in the financial statements.
• C) Controls over financial reporting are effective if they provide reasonable assurance that asset losses will not occur and that losses are properly reflected in the financial statements.
• D) There is no way to create controls that will provide reasonable assurance that asset losses will not occur.

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Definitions:

Statistic

A numerical measure that describes an aspect of a sample of data, such as its mean or variance.

Population

The entire pool from which a statistical sample is drawn and to which the researcher intends the results to apply.

Sample Standard Deviation

A statistic measuring the dispersion or variability of a set of sample data points around the mean.

Population Standard Deviation

A measure of the dispersion or spread of all values in a population.