Which One of the Following Is Not a Critical Component

question 8

Multiple Choice

Which one of the following is not a critical component of assurance services?

• A)a process on which service is provided
• B)an assurance service provider
• C)a user who derives value
• D)a CPA

---

Definitions:

Derivatives

Claims whose value depends on what happens to the value of some other asset. Futures and options are two important types of derivatives, and their values depend on what happens to the prices of other assets. Therefore, the value of a derivative security is derived from the value of an underlying real asset or other security.

Foreign Securities

Investment instruments issued in a jurisdiction outside of the investor's country, including stocks, bonds, and other financial assets.

Negative Beta Value

Indicates an investment's return moves opposite to the market's return, suggesting a potential risk-reducing benefit in a diversified portfolio.

Risk-Reducing Property

A characteristic of investment diversification that helps in lowering the overall risk of a portfolio.