Strong Entity-Level Controls _______

question 34

Multiple Choice

Strong entity-level controls _______.

• A)make it less likely that transaction-level controls will operate effectively
• B)make it more likely that transaction-level controls will operate effectively
• C)generally increase inherent risk
• D)have no bearing on inherent risk

---

Definitions:

Journal Entry

A record in the books of account that represents a financial transaction.

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.

FUTA Tax

A United States federal tax levied on employers to fund state workforce agencies and unemployment benefits.