The Most Important Points to Understand About Gathering Evidence Based

question 48

Multiple Choice

The most important points to understand about gathering evidence based on sampling procedures are:

• A)when to use a sample to gather evidence
• B)how to generate a random sample for the test
• C)how to validate the audit test
• D)how to observe the deviations found in the sample
• E)how to use the sample results to arrive at an assumption about the population
• F)both A and B
• G)both C and D
• H)both D and E

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Definitions:

Independent

Free from external control or influence; not connected or dependent on something else.

Internal Control Systems

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Financial Results

The outcomes of a company's operations and activities in terms of profit or loss, revenue, and expense over a specific period.

Audit Committee

A subset of a company's board of directors that oversees financial reporting and disclosure.