Continuous Assurance (Continuous Auditing) Will Lead To

question 88

Multiple Choice

Continuous assurance (continuous auditing) will lead to:

• A) fewer financial statement audits
• B) use of audit modules embedded in ERP systems
• C) convergence of GAAP and IFRS
• D) All of the above

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Definitions:

Covariances

A measure indicating the extent to which two variables change in tandem over time.

Well-Diversified Portfolio

A collection of investments that spans various assets to minimize risk while maximizing returns.

Single Index Model

A simplified model to estimate the return of a security based on the return of the market as a whole and the security's sensitivity to the market.

Portfolio's Sigma

A statistical term that represents the standard deviation of returns of an investment portfolio, reflecting its risk.