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NEW QUESTION: 1
When would you use a Wilcoxson Rank Sum test?
A. When the populations represent the sums of other values
B. When you cannot make an assumption about the distribution of the populations
C. When the data cannot easily be sorted
D. When the data can easily be sorted
Answer: B
NEW QUESTION: 2
When an auditor increases the assessed level of control risk because certain control activities were
determined to be ineffective, the auditor most likely would increase the:
A. Extent of tests of controls.
B. Level of inherent risk.
C. Level of detection risk.
D. Extent of tests of details.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. An increase in the assessed level of control risk means that the assessed risk of
material misstatement has also increased, and this requires a corresponding decrease in detection risk to
maintain the same (presumably low) level of overall audit risk. Increasing the extent of tests of details will
result in a reduction in detection risk.
Choice "A" is incorrect. Increasing detection risk would result in a corresponding increase in overall audit
risk, which is the opposite of the desired response.
Choice "C" is incorrect. The auditor cannot change the level of inherent risk, which is based on the nature
of the related assertion.
Choice "D" is incorrect. If the auditor has already determined that certain control activities are ineffective,
increasing the extent of those tests is not likely to be helpful. The auditor needs to find a way to
compensate for the increased level of risk in order to keep overall audit risk to a low level.
NEW QUESTION: 3
A financial institution engaged in mortgage lending has embarked on a business process improvement initiative to eliminate the activities that hinder growth to ultimately improve the success rate of its mortgage business. As a benchmark for identification, the institution is keen on improving any business process that has less than a 75% success rate. The institution has appointed a business analyst (BA) to review the business transactions for the processes of origination, payments, and closures, as well as identify opportunities for improvements and recommend solutions.
The BA has collected the following information over the last three months pertaining to these business processes:
*All the business processes are at their maximum capacity in terms of the current number of transactions.
*Each business process has a certain number of rejects and the reasons for rejection include documentation, verification, collateral, and funding. Funding rejects occur when the bank's customers have failed to make payment of their mortgage processing fee or mortgage closure payment.
The BA has also recommended the use of documentation checklists as a solution to eliminate the documentation rejects.
Assuming the BA's recommendation to be true, what will be the new success rate of the mortgage closure process?
A. 10%
B. 85%
C. 90%
D. 20%
Answer: A
NEW QUESTION: 4
When adding a component line to a bill of materials (BOM), you discover that the Resource
consumption check box is cleared and a warehouse is not specified.
Which warehouse will be usedor the component line?
A. The picking warehouse from the item master data of the finished good
B. The shipping warehouse from the item master data of the finished good
C. The picking warehouse from the item master data of the component product
D. The shipping warehouse from the item master data of the component product
Answer: B