Examples of Controls Tested in the Period-End Financial Reporting Process

question 84

Multiple Choice

Examples of controls tested in the period-end financial reporting process include:

• A) an estimation of the contingent liabilities at year-end.
• B) a review of appropriate authorization over paid invoices.
• C) the client's accounting policies conform to GAAP and/or IFRS.
• D) All of the above.

---

Definitions:

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about a population parameter, determining whether there is enough evidence to reject the null hypothesis.

Rejection Region

In hypothesis testing, the range of values for which the null hypothesis is considered unlikely and is therefore rejected.

Chi-Square Distribution

A statistical distribution that is used to determine the goodness of fit of an observed distribution to an expected one under the null hypothesis.

Critical Value(s)

Specific point(s) on a distribution curve that define the threshold for rejecting the null hypothesis in hypothesis testing.