Auditors Have Several Techniques Available to Them to Test Computer-Processing

question 7

Multiple Choice

Auditors have several techniques available to them to test computer-processing controls.An audit technique that immediately alerts auditors of suspicious transactions is known as

• A)a SCARF.
• B)reperformance.
• C)the snapshot technique.
• D)an audit hook.

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Definitions:

Judgment Sampling

A sampling method where the samples are selected based on the opinion of an expert, rather than random selection.

Central Limit Theorem

A statistical theory stating that, given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Consistent Estimator

An estimator that, as the sample size increases, converges in probability to the true parameter value.

Population Mean

The average value of all the members of a population.