An Auditor Is Most Likely to Assess Control Risk at Maximum

question 30

Multiple Choice

An auditor is most likely to assess control risk at maximum if the payroll department supervisor is responsible for

• A)Examining authorization forms for new employees.
• B)Authorizing payroll rate changes for all employees.
• C)Comparing payroll registers with original batch transmittal data.
• D)Hiring all subordinate payroll department employees.

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Definitions:

Equity Theory

A theory of motivation that proposes individuals are motivated by a sense of fairness in the reward-to-effort ratio compared to others.

Reward Theory

A psychological theory that suggests human behavior is motivated by the desire for rewards or incentives.

Opposites Attract Theory

The hypothesis that individuals are attracted to others with different personality traits or physical attributes than themselves.

Interpersonal Attraction

The force that draws people together and creates the desire for ongoing social interaction, which can be based on physical appearance, similarity, or other factors.