Listed Below Are Ten Terms Followed by a List of Phrases

question 12

Multiple Choice

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Routine activities that are meant to continually observe internal control activities.

• A)Monitoring
• B)Oversight board
• C)Control activities
• D)Corporate executive accountability
• E)Nonaudit services
• F)Control environment
• G)Internal control
• H)Information and communication
• I)Auditor rotation
• J)Risk assessment

---

Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Von Neumann-Morgenstern Utility Function

A utility function theory based on expected utility, fundamental in making rational decisions under uncertainty, emphasizing outcomes' probabilities.

Probability

The measure of the likelihood that an event will occur.

Expected Utility

A concept in economics and finance that calculates the anticipated utility of different choices, taking into account the various possible outcomes and their probabilities.