All of the Following Proof Can Be Used in an Auditor's

question 16

Multiple Choice

All of the following proof can be used in an auditor's defense against third party lawsuits for fraud except for:

• A) The third party was not in contractual privity
• B) The auditor did not have a duty to the third party
• C) The third party was negligent
• D) The third party did not suffer a loss

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Definitions:

Nearly Normal Condition

A prerequisite for certain statistical tests that the distribution of the data should be approximately normal.

Standard Deviation

A metric that calculates the degree of spread or scattering within a data set.

Nearly Normal Condition

Nearly normal condition refers to a situation where a dataset or distribution closely approximates a normal distribution, meeting certain criteria for statistical analyses.

Confidence Interval

A range of values, derived from a dataset, that is used to estimate the likelihood of containing the true mean or proportion of the whole population.