All of the Following Are Advantages of the Test Data

question 26

Multiple Choice

All of the following are advantages of the test data technique except

• A)auditors need minimal computer expertise to use this method
• B)this method causes minimal disruption to the firm's operations
• C)the test data is easily compiled
• D)the auditor obtains explicit evidence concerning application functions

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Definitions:

Alpha

A threshold value used in hypothesis testing that defines the maximum probability of committing a Type I error.

Type I Error

The erroneous dismissal of a true null hypothesis, often referred to as a "false positive."

Type I Error

An error where a valid null hypothesis is wrongly discredited, also known as a "false positive."

Type II Error

A statistical error that occurs when a test fails to reject a false null hypothesis.