The Nature of Tests of Controls Relates to the Type

question 4

Multiple Choice

The nature of tests of controls relates to the type of evidence obtained. Which of the following is not an example of a type of evidence relevant to tests of controls?

• A) Inquiries of entity personnel.
• B) Inspection of documents.
• C) Observation of application of the control.
• D) Inspection of signatures indicating performance of the control.
• E) Reperformance of the application of the control by entity personnel.

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Definitions:

Motivation Perform

The drive or incentive that leads an individual to act or perform tasks in a desired manner.

Justify Differences

The process of providing valid reasons or evidence to explain variations or disparities in behaviors, outcomes, or treatments.

Equal Value

A principle asserting that jobs, not necessarily identical but equivalent in terms of skills, effort, responsibility, and working conditions, should receive the same compensation.

Job Grading Method

A systematic approach used by organizations to evaluate and classify jobs based on their relative worth and complexity to establish appropriate compensation levels.