Which of the Following Is an Auditor Least likely to Inquire

question 19

Multiple Choice

Which of the following is an auditor least likely to inquire about when performing a review of a nonpublic company?

• A)Significant transactions near the end of the period.
• B)Communications with regulatory agencies.
• C)That financial statements are prepared in conformity with a special basis of auditing.
• D)Questions that have arisen in applying review procedures.

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Definitions:

Null Hypothesis

A statement positing that no statistical significance exists in a set of observations, serving as the default assumption in hypothesis testing.

Rejection Region

The area in the probability distribution that, if the test statistic falls within, leads to the rejection of the null hypothesis.

P-value Method

A statistical approach that determines the significance of results by comparing the p-value to a predetermined level of significance, often determining if there is enough evidence to reject a null hypothesis.

Rejection Region

The range of values for which the null hypothesis is rejected in hypothesis testing, based on the chosen significance level.