An Auditor Wants to Perform Tests of Controls on a Client's

question 7

Multiple Choice

An auditor wants to perform tests of controls on a client's cash disbursement procedures.If the control procedures leave no audit trail or documentary evidence,the auditor is most likely to test the procedures by ________.

• A)confirmation and observation
• B)observation and inquiry
• C)analytical procedures and confirmation
• D)inquiry and analytical procedures

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Definitions:

Matched Pair

A technique in experimental design where pairs of subjects are closely matched based on certain key characteristics, and one subject from each pair is assigned to each experiment group.

Nonzero Differences

Variations or disparities in data that are distinct from zero, indicating a measurable change or effect.

Parametric T-Test

A statistical test used to compare the means of two samples, assuming that the underlying populations have a normal distribution and known variance.

Nonparametric Counterpart

A type of statistical method that does not assume a specific distribution for the data, often used when the data doesn't meet the assumptions of parametric tests.