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When measuring severity, Crockford (1991) focuses primarily on? Select one: a. Whether the severity is within...

When measuring severity, Crockford (1991) focuses primarily on?

Select one:

a. Whether the severity is within tolerance

b. Whether the severity is within Risk Appetite

c. Whether the severity can be absorbed within a single accounting period

d. All of the above

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Answer #1

Measurement of Severity according to crockford(1991) is the second factor in which crockford emphasize that Severity of risk can be observed within a single accounting period or not, because there are various risks determined like major risks and minor risk along with trivial risk so those risks are to be associated with the accounting period recording.

It is not related to Risk tolerance or Risk appetite.

Correct answer will be option (C) whether the severity can be observed within a single accounting period.

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