It Is Acceptable for Auditors to Reduce Test of Balances

question 77

True/False

It is acceptable for auditors to reduce test of balances and transactions if the ITGC are effective.

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Definitions:

Uniform Distribution

A type of probability distribution where all outcomes are equally likely; in a continuous uniform distribution, any value within a specified range is equally likely to occur.

Standard Normal Variable

A random variable that has a normal distribution with a mean of zero and a standard deviation of one.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon.

Standard Normal Variable

A normal random variable with a mean of zero and a standard deviation of one; used as a basis for comparison with other normal distributions.