Which of the Following Is an Example of a Control

question 2

Multiple Choice

Which of the following is an example of a control environment deficiency?

• A)A low level of control consciousness within the organization.
• B)An audit committee that does not have independent members.
• C)An audit committee that is not viewed as the client of the external auditor.
• D)All of the above.

---

Definitions:

CAPM

Capital Asset Pricing Model, a model that describes the relationship between systematic risk and the expected return for assets, particularly stocks.

Required Return

The minimum gain needed from an investment to make it worthwhile for the investor, considering the risk associated.

Beta

A measure of a stock's volatility in relation to the overall market; a beta higher than 1 indicates higher volatility than the market, and a beta lower than 1 indicates lower.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government bonds.