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:

Credit Period

The duration during which a buyer can purchase goods or services on credit before payment is due to the seller, often expressed in days.

Percentage Cost

The cost expressed as a percentage of the purchase price or other value, often used to analyze and compare costs or expenses.

Default Rate

This is the rate at which borrowers fail to make payments on their debts, often expressed as a percentage.

Increase in Sales

A rise in the volume or value of products or services sold by a business, indicating potential growth or market expansion.