Vita Zitkauskas, the Senior on the Audit of Magna International

question 32

Multiple Choice

Vita Zitkauskas, the senior on the audit of Magna International, was explaining how audit strategy and audit plans have an impact on tests of controls and substantive procedures. She made two statements: Audit strategy details the audit procedures to be used when testing controls and when conducting detailed substantive audit procedures.
The audit plan provides the basis for developing an audit strategy.
Which statements were true, if any?

• A) (i) only
• B) (ii) only
• C) (i) and (ii)
• D) neither (i) or (ii)

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Definitions:

Z Statistic

A type of test statistic used in standard normal distribution to determine the number of standard deviations a data point is from the mean.

Multiple Logistic Regression

A statistical technique used to model the relationship between a dichotomous dependent variable and multiple independent variables.

Test Statistic

A standardized value computed from sample data during hypothesis testing, used to determine the p-value.

Explanatory Variables

Explanatory variables are variables thought to cause or influence the outcome variable in a study.