A.The highest risk assessment should always be assigned to the area with the highest probability of occurrence.

B.The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

C.The highest risk assessment should always be assigned to the area with the largest potential loss.

D.Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

A.Accounts receivable turnover, return on assets, and the current ratio.

B.Inventory turnover in days, the current ratio, and return on equity.

C.Accounts receivable turnover, inventory turnover in days, and the current ratio.

D.Times interest earned, return on assets, and inventory turnover.

A.Formalized non-regression testing phase.

B.Use of a formal systems development lifecycle.

C.End-user involvement.

D.Adequate software documentation.

A.Cash budget.

B.Selling and administrative expense budget.

C.Budgeted balance sheet.

D.Budgeted income statement.

A.The acquiring organization has information that the selling organization is weak.

B.It is expected that there will be slow retaliation from incumbents.

C.The number of bidders to acquire the organization for sale is low.

D.The condition of the economy is poor.