Internal Control ________

question 79

Multiple Choice

Internal control ________.

• A)relates only to a client's IT systems
• B)relates to the efficiency of the internal audit function
• C)is a very broad concept and can encompass all of the elements of an organization
• D)is unrelated to the audit

---

Definitions:

Beta

A measure of the volatility of a stock or portfolio compared to the volatility of the overall market.

Dividend Growth Model

A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated using models like the Capital Asset Pricing Model (CAPM).

Market Risk Premium

Slope of the Security Market Line; the difference between the expected return on a market portfolio and the risk-free rate.