Statistical Sampling Generally May Be Applied to Test Internal Control

question 82

Multiple Choice

Statistical sampling generally may be applied to test internal control when the client's internal control procedures:

• A)Depend primarily on appropriate segregation of duties.
• B)Are carefully reduced to writing and are included in client accounting manuals.
• C)Leave an audit trail in the form of evidence of compliance.
• D)Enable the detection of material fraud in the accounting records.

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Definitions:

General Solutions

Broad, non-specific approaches to solving problems that may be applied to a wide range of situations or challenges.

Performance Goals

Defined outcomes that individuals or teams aim to achieve within a specific time frame.

Team's Motivation

The driving forces that influence the enthusiasm and persistence of a team towards the accomplishment of its goals.

Knowledge-based Trust

Trust that is built over time based on the parties’ knowledge and experience of each other, implying reliability and competence.