Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A) Preventing errors during processing should not be an important objective of every accounting system.
• B) Preventive controls can be applied to each transaction during normal processing to avoid errors occurring.
• C) To be effective, controls over transactions should only include detective controls.
• D) The purpose of preventive controls is to discover fraud or errors that may have occurred during transaction processing.

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Definitions:

Null Hypothesis

A default statement that there is no effect or no difference, often used as a starting assumption in statistical hypothesis testing.

Type I Error

The error that occurs when the null hypothesis is incorrectly rejected, falsely indicating a significant effect.

Type II Error

Occurs when a false null hypothesis is not rejected, meaning an effect or difference is missed in the analysis.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as the basis for statistical testing.