During Discussion and Inquiry with Management,the Auditor Determined That the Company

question 18

Multiple Choice

During discussion and inquiry with management,the auditor determined that the company has started a new line of business that requires a substantial investment in manufacturing equipment.The company has also implemented wireless scanning for its warehouse and inventory.Which of the following techniques will the auditor likely use to corroborate these statements?

• A)further inquiry of the accounting personnel
• B)inspection of recent sales invoices for types of sales
• C)use of analytical procedures,comparing last year to this year
• D)observation during the plant tour

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Definitions:

Empowerment

The process of giving individuals or groups the authority, resources, and confidence to take control of their circumstances and achieve their own goals.

Suggestion Involvement

Active participation in generating and sharing ideas or solutions to contribute to a group or project.

Theory X

A management theory suggesting that employees are inherently lazy and will avoid work if they can, necessitating a controlling management style.

Employee Involvement

The degree to which employees are allowed or encouraged to contribute ideas and participate in decisions within their workplace.