Which of the Following Is the First Step an Auditor

question 21

Multiple Choice

Which of the following is the first step an auditor performs when performing analytical procedures?

• A)Identify the computation,comparison or relationship to be made or investigated
• B)Determine appropriate procedures for investigating the reasons for differences if they are significant
• C)Draw conclusions
• D)Assess the reliability of any data to be used

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Definitions:

P-value

A statistical measure indicating the probability of observing the given or more extreme outcome assuming the null hypothesis is true.

Population Mean

The average value of a characteristic in a population, calculated by summing the values for the characteristic among all individuals and dividing by the total number of individuals.

Null Hypothesis

A statement that asserts that there is no effect or no difference, and it serves as the starting point for statistical testing.

P-value

It quantifies the likelihood of observing the collected data if the null hypothesis were true, used in hypothesis testing as a critical component.