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Which of the following statements are true about revealed audits?
Which of the following statements are true about revealed audits?A.) Revealed Audits are only done on weekdays.
B.) Revealed audits are performed during the tax season.
C.) The Reviewer will arrive with an authorization letter providing instructions for verification purposes.
D.) Revealed audits are unannounced.
E.) All of the above.
F.) None of the above.
Final answer:The true statement about revealed audits is that the reviewer will arrive with an authorization letter for verification (C). Revealed audits are not limited to weekdays or tax season, nor are they unannounced, thus A, B, and D are incorrect.Explanation:The correct statement about revealed audits is C. Revealed audits are instances where the individuals or companies being audited are made aware of the audit beforehand. This awareness is typically communicated through anauthorization letterthat the reviewer presents, which provides instructions for verification purposes. The letter ensures that the entities being audited know who the auditors are and why they are there, ensuring a smoother audit process.Statements A and B are incorrect as the scheduling of audits can vary and is not necessarily limited to weekdays or tax season. Statement D is also incorrect because revealed audits, by definition, are announced, not unannounced.The aspects of probability, such as 'how many are expected to be audited,' 'find the probability that no one was audited,' and 'find the probability that at least three were audited,' are unrelated to the nature of revealed audits but rather to statistical analysis and probability theory....