To Learn More About a Company and Its Inherent Risks,auditors

question 27

Multiple Choice

To learn more about a company and its inherent risks,auditors can use which of the following resources?

• A)Management inquiries.
• B)Economic statistics.
• C)Online searches.
• D)Any of the above could be used.

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Definitions:

Relevance

A fundamental quality of information that makes it useful for decision-making, ensuring that the information provided has the capacity to influence the decisions of its users.

Timely Basis

The practice of completing or delivering work within an agreed or expected period.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the market price per share by the earnings per share (EPS).

Investors' Expectations

The anticipations or beliefs that investors hold regarding future performance, earnings, and growth of a company or market.