All of the Following Factors Can Complicate the Post-Audit Process

question 42

Multiple Choice

All of the following factors can complicate the post-audit process except

• A) each element of the cash flow forecast is subject to uncertainty.
• B) projects sometimes fail to meet expectations for reasons beyond the control of operating executives.
• C) it is often difficult to separate the operating results of one investment from those of a larger system.
• D) executives who were responsible for a given decision might have moved on by the time the time the results of the long term project are known.
• E) the most successful firms,on average,are the ones that put the least emphasis on the post-audit.

---

Definitions:

Null Hypothesis

In statistical testing, the default hypothesis that there is no effect or no difference, and any observed effect is due to chance.

LCL

Lower Control Limit, a statistical measure in quality control processes that defines the lower threshold acceptable for variation.

UCL

Upper Control Limit, a line on a control chart that represents the maximum acceptable limit of variation in a process.

T-distribution

A statistical probability distribution utilized for estimating parameters of a population when dealing with a small sample size and an unknown population variance.