The Audit Risk Model Can Also Be Used for Quantitative

question 37

Multiple Choice

The audit risk model can also be used for quantitative analysis in which all risks are stated as a percentage ranging from _______.

• A)1% to 1%
• B)1% to 100%
• C)1% to 10%
• D)1% to 5%

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as a profit from financial investments.

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Confidence

The degree to which one can be certain or believe in a finding, result, or proposition, often used in the context of statistical conclusions.