When the Auditor Decides to Include Controls Testing in Their

question 34

Multiple Choice

When the auditor decides to include controls testing in their audit strategy,they select those controls that:

• A)provide no assurance that the controls operated effectively throughout the period of reliance.
• B)are the easiest to test.
• C)provide the most efficient and effective audit evidence.
• D)provide the least efficient and effective audit evidence.

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Definitions:

Slope Coefficient

In linear regression, it represents the expected change in the dependent variable for a one-unit change in the independent variable.

Dummy Variables

Variables created to represent attributes with two or more distinct categories or levels, used in regression analysis.

Nominal Variable

A type of variable with data that can be categorized but not ranked or ordered numerically.

Regression Analysis

A set of statistical processes for estimating the relationships among variables, often to predict a dependent variable from one or more independent variables.