A Dual Purpose Test Simultaneously

question 5

Multiple Choice

A dual purpose test simultaneously:

• A)Addresses two different accounts.
• B)Functions as a substantive test and as a test of controls.
• C)Functions as an analytical procedure and a substantive test.
• D)Substantiates an ending balance and the transactions making up the balance.

---

Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Covariance

A measure of how two variables move in relation to each other, used in finance to diversify portfolios and minimize risk.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with a particular investment.

Market Risk

The risk of losses in financial markets due to factors such as economic recessions, political turmoil, or changes in interest rates, affecting the overall market.