Which of the Following Is a Use of External Audits

question 38

Multiple Choice

Which of the following is a use of external audits?

• A) evaluating financial stability
• B) evaluating production efficiency
• C) evaluating sales effectiveness
• D) identifying possible mergers or acquisitions
• E) identifying earnings potential

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Definitions:

Conditional Probability (P(B | A))

The probability of an event B occurring given that event A has already occurred.

Mutually Exclusive

Describes events that cannot occur at the same time, meaning the occurrence of one event excludes the possibility of the other event happening.

P(A ∩ B)

The probability of the intersection of events A and B, representing the likelihood that both events occur simultaneously.

P(A ∪ B)

Represents the probability of the occurrence of at least one of two events, A or B, including the case where both events occur simultaneously.