During the Course of Working as an External Auditor,you Discovered

question 21

Multiple Choice

During the course of working as an external auditor,you discovered that your audit client is going to build a new luxury ski resort in rural Utah.As a result,you purchased a vacation home near that resort in the expectation that housing prices will benefit from the announcement of a luxury resort being built nearby.Your action:

• A) Was unethical only if it precluded your client from pursuing this opportunity to earn a profit on nearby real estate
• B) Was unethical even though it caused no harm to your client
• C) Was ethical because the insider trading laws only concern purchases of securities
• D) Was ethical because your action was expressly allowed by the IFAC code of conduct

Understand the impact of the coefficient of correlation on the regression model and its interpretation.

Recognize that a strong correlation does not imply causation between variables.

Interpret the significance of the slope of the regression line and its relationship with the coefficient of correlation.

Understand the limitations and applications of regression analysis for prediction.

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Definitions:

Olfactory Receptors

are specialized neural receptors in the nose involved in the detection of odor molecules.

Odorants

Chemicals that are capable of eliciting an olfactory response, meaning they have properties that allow them to be smelled.

Detecting Scent

The ability of organisms to identify and respond to chemical signals in the environment through the sense of smell.

Signaling Scent

Odors or fragrances emitted by organisms or substances, used to communicate or indicate presence.