Risk Exposures in the General Ledger and Financial Reporting Systems

question 49

Multiple Choice

Risk exposures in the general ledger and financial reporting systems include all of the following except

• A)defective audit trail
• B)unauthorized access to the general ledger
• C)loss of physical assets
• D)general ledger account is out of balance with the subsidiary account

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Definitions:

Black-Scholes

It's a mathematical model used for pricing European-style options, taking into account factors like volatility, underlying asset price, and time to expiration.

Variance

A statistical measure of the dispersion of returns for a given security or market index.

Elasticity

A measure of how much the demand or supply of a product changes in relation to a change in one of its determinants like price.

Hedge Ratio

A ratio used to reduce financial risk, representing the proportion of a position hedged to the total position size.