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There Are Several Factors That Affect Engagement Risk And, Therefore

question 12

Essay

There are several factors that affect engagement risk and, therefore, acceptable audit risk. Discuss three of these factors.


Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.

Mean Purchase

The average amount of purchases made over a certain period of time or across individuals.

Probability

The expression of an event's likelihood as a number from 0 to 1.

Standard Error

A measure that quantifies the variation or dispersion of sample means relative to the true population mean.

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