Whether the Auditor Chooses to Test or Not to Test

question 99

Multiple Choice

Whether the auditor chooses to test or not to test internal controls,the auditor is required to

• A)obtain an understanding of internal controls relevant to the audit
• B)perform substantive test of transactions
• C)perform analytical procedures
• D)perform substantive test of balances

Understand basic statistical computations such as average, standard deviation, and range for given data sets.

Understand the selection of appropriate measures of central tendency in various contexts.

Understand the principles behind sample and population characteristics, including parameters and statistics.

Understand the calculation and interpretation of variance and its relevance to data scatter.

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Definitions:

Laceration

A deep cut or tear in the skin or flesh, which could be caused by accidents with sharp objects and might require medical attention to prevent infection.

Inflammatory Process

A biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, characterized by redness, swelling, heat, and pain.

Vascular Response

The series of changes in the size and calibre of blood vessels in reaction to stimuli, affecting blood flow and pressure.

Antidiuretic Hormone

A hormone produced by the brain that regulates the balance of water in the body by reducing the amount of water excreted in urine.