Which of the Following Is True Regarding the Financial Assertions

question 14

Multiple Choice

Which of the following is true regarding the financial assertions?

• A) All assertions can be proved using only substantive procedures, but it would be too costly.
• B) Some assertions are virtually impossible to prove without some evaluation of control effectiveness.
• C) Some assertions can be proved using only an evaluation of control effectiveness.
• D) The evaluation of control effectiveness is only used because it is more efficient than using only substantive procedures.

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Definitions:

Wage Disparity

The difference in earnings between two or more groups within a workforce, often based on gender, race, occupation, or education level, that can lead to inequality.

Median Earnings

The middle value of earnings in a given distribution, with an equal number of persons earning more and less than this value.

Efficiency-wage Model

A theory suggesting that higher wages can lead to increased productivity by attracting better workers and motivating them to work harder.

Marginal Productivity

The additional output generated by employing one more unit of a particular input, holding other inputs constant.