When Payroll Is Outsourced and the Auditor Relies on a SAS

question 18

True/False

When payroll is outsourced and the auditor relies on a SAS 70 Type II audit report, dual testing is not relevant.

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Definitions:

Degrees of Freedom

The volume of independent values or figures that may be assigned within a statistical distribution.

Standard Error

A statistical measure that quantifies the amount of variability in the sampling distribution of a statistic, often used to estimate the accuracy of sample means.

Sample Means

The average value obtained from a sample, used as an estimate of the population mean.

Null Hypothesis

An initial assumption made for statistical analysis that suggests no significant effect or relationship exists between variables.