The Cycle Approach to Segmenting an Audit

question 82

Multiple Choice

The cycle approach to segmenting an audit:

• A) divides an audit into segments by keeping closely related types of transactions and account balances in the same segment.
• B) divides the different operation areas of the client's business operations.
• C) requires different audit teams that cycle between assignments to ensure the objectivity objective is met.
• D) all of the above

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Definitions:

Human Resources

The department within an organization that deals with the hiring, administration, and training of personnel.

Fair Labor Standards Act

U.S. legislation enacted in 1938 to protect workers against unfair pay and employment practices, establishing minimum wage, overtime pay eligibility, and child labor standards.

Compa-ratio

A comparison ratio that measures an employee's salary relative to the median or midpoint of the market rate for their job.

Pay Range

The spectrum of compensation offered for different positions within a company, indicating the minimum and maximum pay for each role.