Which of the Following Is Most Likely to Be an Overall

question 4

Multiple Choice

Which of the following is most likely to be an overall response to fraud risks identified in an audit?

• A)Only use certified public accountants on the engagement.
• B)Place increased emphasis on the audit of objective transactions rather than subjective transactions.
• C)Supervise members of the audit team less closely and rely more upon judgment.
• D)Use less predictable audit procedures.

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Definitions:

Forecast

A prediction or estimate of future events, often based on analysis of current and historical data.

Exponential Smoothing

A forecasting technique that applies decreasing weights to past observations, with the most recent observations receiving the most weight.

Smoothing Constant

A parameter used in exponential smoothing models to weigh the significance of the most recent observation in forecasting.

Time Series

Time Series refers to a sequence of data points collected or recorded at successive times, often at regular intervals.