Auditors Would Use the Enterprise Risk Model

question 22

Multiple Choice

Auditors would use the enterprise risk model:

• A)to reduce the client's business risk.
• B)to determine detection risk.
• C)to evaluate management's risk assessment.
• D)to monitor client risk.

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Definitions:

Present Value Table

A table that provides factors for calculating the present value of future cash flows based on a certain discount rate over a number of periods.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.