Auditors Would Use the Enterprise Risk Model

question 60

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:

Economy

An area of the production, distribution, and trade of goods and services by different agents in a particular geographic region.

Ability-to-pay Taxation

A principle of taxation based on the belief that taxes should be levied according to an individual’s or entity’s capacity to pay, reflecting their income or wealth.

Progressive Tax Structure

A tax system in which the tax rate increases as the taxable amount increases, typically designed to distribute the tax burden more heavily on those with higher incomes.

High-income Receivers

Individuals or entities that receive a significantly higher amount of income compared to the median or average levels within a society or economic system.