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:

Total Revenue

The overall amount of money earned by a firm from the sale of its products or services before any costs are subtracted.

Point Elasticity

A measure of elasticity that uses the slope measurement.

Slope Measurement

The rate at which a line or curve inclines or declines, indicating the relationship between changes in variables on a graph.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influencing pricing strategies.