An Auditor Begins the Identification of Business Risks by Doing

question 37

Multiple Choice

An auditor begins the identification of business risks by doing what?

• A)Preliminary analysis.
• B)Financial analysis.
• C)Strategic analysis.
• D)Horizontal analysis.

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Definitions:

Hearsay

Testimony that is given in court by a witness who relates not what he or she knows personally, but what others have said, and that is therefore generally not admissible as evidence.

Irrelevant Evidence

Evidence in a legal proceeding that is not directly related to the case at hand, making it inappropriate for consideration during the decision-making process.

Circumstantial Evidence

Evidence that indirectly proves a fact through an inference, as opposed to direct observation or testimony.

Direct Evidence

Evidence that directly proves a fact without needing any inference or presumption, such as eyewitness testimony.