Which of the Following Types of Audits Are Ordinarily Performed

question 16

Multiple Choice

Which of the following types of audits are ordinarily performed following generally accepted auditing standards?

$\begin{array} { l c c } &\text { Public Company Audit } & \text { Norpublic Comparty Audit } \\\text { A } & \text { Yes } & \text { Yes } \\ \text { B. } & \text { Yes } & \text { No } \\ \text { C. } & \text { No } & \text { Yes } \\ \text { D. } & \text { No } & \text { No } \end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Unsystematic Risks

Risks that affect a specific company or industry, as opposed to the market as a whole, including management decisions or product recalls.

Well-Diversified Portfolio

An investment portfolio that spreads risk and opportunity across a wide range of assets and sectors, aiming to reduce the impact of any single investment's poor performance.

Diversifiable Risk

A type of investment risk that can be reduced through diversification, relating to factors affecting specific industries, companies, or securities rather than the market as a whole.

Publicly Traded Stocks

Stocks of companies that are traded on public stock exchanges, making them available to buy and sell by investors.