Inherent Risk for the Valuation or Allocation Assertion Will Be

question 50

Multiple Choice

Inherent risk for the valuation or allocation assertion will be high in the personnel services cycle when:

• A) employee turnover is low.
• B) factory workers are paid based on production.
• C) payroll checks are drawn from a separate imprest bank account.
• D) pay periods are weekly.
• E) employee absenteeism is minimal.

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Definitions:

Informal Elements

Components within an organization that are not officially documented or structured but contribute to the culture, such as norms, behaviors, and unwritten rules.

Organizational Development

A field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance.

Informal Organization

The unofficial and less visible part of the system.

Organization

An entity comprising multiple people, such as an institution or an association, that has a particular purpose.