Which of the Following Is Least Likely to Be Used

question 100

Multiple Choice

Which of the following is least likely to be used in obtaining an understanding of client general controls?

• A) examination of system documentation
• B) inquiry of client personnel (e.g., key users)
• C) walk through of a sales transaction
• D) reviews of questionnaires completed by client IT personnel

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Definitions:

Market Risk Premium

The additional return an investor expects to receive from a market portfolio over a risk-free rate due to the inherent risks.

Beta

In finance, beta is a measure of a stock's volatility in relation to the overall market; a higher beta indicates greater volatility and therefore higher risk and potential return.

Required Return

The minimum expected yield by investors to compensate for the risk of an investment.

Security Market Line

A representation in financial markets that depicts the relationship between the risk of an asset and its expected return.