Auditing Is Responsible For

question 40

Multiple Choice

Auditing is responsible for:

• A) litigation support and redemption.
• B) risk assessment and internal controls.
• C) risk assessment and calculation of damages.
• D) business valuation and risk assessment.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Expected Price

The anticipated cost at which a commodity, asset, or service is thought to be bought or sold in the future.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance on overall portfolio returns.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.