An Example of a Qualitative Factor Auditors Will Consider When

question 103

Multiple Choice

An example of a qualitative factor auditors will consider when determining sample size is _______.

• A)the accounts receivable turnover ratio
• B)the days in receivables ratio
• C)the percentage of bad debt expense
• D)significant turnover in the accounts receivable department

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Definitions:

Arithmetic Return

The simple average of a series of returns generated over a period of time.

Sharpe Measure

A metric used to evaluate the risk-adjusted return of an investment portfolio.

Risk-Free Return

The guaranteed return on an investment with zero risk of financial loss, typically associated with government bonds.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of a set of data points, commonly used to quantify the risk associated with an investment's return.