Auditors Are Concerned with the Addresses Provided for Customers in the Confirmation

question 50

Multiple Choice

Auditors are concerned with the addresses provided for customers in the confirmation of accounts receivable because

• A)confirmations are selected based upon zip codes.
• B)a P.O.Box is more reliable than a street address.
• C)confirmations should be sent only to business addresses and not residential.
• D)the address may be routed to the client for retrieval and fraudulent signing.

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Definitions:

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more groups based on ranked data. It is an extension of the Mann-Whitney U test for more than two groups.

Null Hypothesis

The hypothesis in statistical analysis that proposes there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Distribution

A statistical term describing the way values of a variable are spread or dispersed across a range.

Significance Level

A threshold chosen by the researcher to denote the probability below which a result is considered statistically significant, indicating that the observed result would be unlikely under the null hypothesis.