Which Type of Audit Analytics Might Be Used to Recommend

question 36

Multiple Choice

Which type of audit analytics might be used to recommend action based on previously observed actions?

• A) Prescriptive analytics
• B) Predictive analytics
• C) Diagnostic analytics
• D) Descriptive analytics

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Definitions:

Market Risk Premium

The additional return an investor expects to receive from an equity investment over the risk-free rate, as compensation for taking on higher risk.

Risk-Free Rate

The Risk-Free Rate is the theoretical return on an investment with no risk of financial loss, typically associated with government bonds.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting fees, legal costs, and registration fees.