Management Can Expect Various Benefits to Follow from Implementing a System

question 109

Multiple Choice

Management can expect various benefits to follow from implementing a system of strong internal control. Which of the following benefits is least likely to occur?

• A) Reduced cost of an external audit.
• B) Preventing employee collusion to commit fraud.
• C) Availability of reliable data for decision-making purposes.
• D) Some assurance of compliance with the Foreign Corrupt Practices Act of 1977.
• E) Some assurance that important documents and records are protected.

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Definitions:

Population Variance

A statistical measure that calculates the variance of the entire population, representing the average of the squared differences from the population mean.

Significance Level

The threshold below which a test statistic's p-value must fall for an effect to be considered statistically significant.

Sampling Distribution

A statistical distribution of all possible sample means or sample proportions calculated from all possible samples of a specific size from a population.

Population Variance

A measure of the spread of a population’s data points, indicating the average of the squared differences from the mean.