To Reach a Conclusion on the Effectiveness of a Control,an

question 46

Multiple Choice

To reach a conclusion on the effectiveness of a control,an auditor must first determine ________.

• A)the required degree of company compliance with control procedures
• B)the maximum possible dollar amount that would not affect a user's decision based on the financial statements
• C)the actual degree of company compliance with control procedures
• D)the nature,extent,and timing of planned substantive procedures

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Predictive

Relating to the ability to forecast future events, trends, or behaviors based on current or past data.

Correlation Scores

Numerical measures that indicate the extent to which two variables fluctuate together.