An Auditor Considers Two Factors in Understanding Business Risks

question 31

Multiple Choice

An auditor considers two factors in understanding business risks.What are they?

• A)The likelihood of a risk occurring and the materiality of the risk.
• B)The magnitude of the risk and the type of risk.
• C)The likelihood of the risk occurring and the type of risk.
• D)The likelihood of a risk occurring and the magnitude the risk.

Learn to prepare a budgeted income statement incorporating projected sales, costs, and expenses.

Gain proficiency in preparing a budgeted balance sheet, considering projected cash flows, sales, inventory, and debt levels.

Understand the different components of a budget including sales, cash, production, and expense budgets.

Develop an understanding of continuous budgeting and rolling budget concepts.

---

Definitions:

Single Mothers

Female parents who are not living with a spouse or partner and are raising their children on their own.

Conservative Theory

A political or economic theory advocating for traditional values, minimal government intervention in the economy, and emphasizing individual responsibility and market freedom.

Welfare Dependency

A condition where individuals or families rely extensively on government assistance for long periods, rather than obtaining income through employment.

The Poor

Individuals or groups who lack the financial resources to meet a minimum level of living standards considered acceptable in a society.