One of the Most Important Reasons for Having a System

question 3

Multiple Choice

One of the most important reasons for having a system of internal control is to:

• A) improve the effectiveness and efficiency of the operations of the organization.
• B) ensure no employees have ever been convicted of stealing.
• C) eliminate any temptations that may be presented to employees that could lead to theft from the company.
• D)prevent a salesperson from using a company car for personal transportation.

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Definitions:

Annual Wage Base

The maximum amount of income that is subject to certain taxes or benefits calculations within a calendar year.

Loss Of Income

Financial detriment resulting from an inability to work due to injury, business interruption, or other reasons, leading to a temporary or permanent lack of earnings.

Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Overtime Provisions

Regulations that define the conditions under which employees are entitled to extra pay for working beyond the standard working hours.