Risk Assessment Procedures Include Inquiries of Management and Others by the Auditor

question 50

Multiple Choice

Risk assessment procedures include inquiries of management and others by the auditor. As part of these procedures, the auditor should talk to

• A) internal auditors.
• B) board of directors.
• C) individuals involved with regulatory compliance.
• D) all of the above.

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Definitions:

Hedge Ratio

The ratio used to calculate the number of derivatives needed to hedge a particular risk exposure.

Hedge Ratio

A ratio used to measure the proportion of exposure that is protected from risk through hedging activities.

Dollar Change

The difference in the value of a financial instrument or market index between two points in time.

Dollar Exposure

The risk associated with changes in the value of the U.S. dollar compared to other currencies in international finance.