Which of the Following Controls Would Be of Concern to Management

question 4

Multiple Choice

Which of the following controls would be of concern to management but not to the auditor?

• A)controls over the collection of accounts receivable amounts
• B)controls over the entry of payroll wage rates into the computer systems
• C)controls over health and safety guidelines compliance by employer
• D)controls over the cost of inventory items as recorded in the perpetual inventory system

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Definitions:

Inequity

The state of being unfair or unequal, often in the context of rewards or treatment.

Equity Theory

A theory in social psychology that explains how individuals assess their own job inputs and outcomes in relation to others, aiming for fairness in exchange relationships.

Tension

The state of being stretched tight, which can refer to physical objects, mental states, or relationships between people or groups.

First-level Outcomes

The initial results or consequences that directly follow an action, event, or decision.