The Risk of Associating with a Client Known to Have

question 64

Multiple Choice

The risk of associating with a client known to have a dubious reputation for honesty is referred to as:

• A) audit risk.
• B) detection risk.
• C) engagement risk.
• D) Both b and c

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers.

Variance

A measure of the dispersion of a set of data points around their mean; it is calculated as the average of the squared differences from the Mean.

Chi-squared Distribution

The Chi-squared distribution is a statistical distribution widely used in inferential statistics, especially in chi-squared tests, described by degrees of freedom.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or parameter.