Internal Controls That Are Likely to Prevent the Client from Including

question 23

Multiple Choice

Internal controls that are likely to prevent the client from including as a business expense those transactions that primarily benefit management or other employees rather than the entity being audited satisfy the control objective that

• A)recorded acquisitions are for goods and services received.
• B)existing acquisitions are recorded.
• C)acquisitions are correctly valued.
• D)acquisitions are correctly classified.

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Definitions:

Need for Achievement

A psychological trait that drives individuals to pursue and meet goals or standards of excellence, often motivating behavior in competitive environments.

Moderately Difficult Goals

Targets set for individuals or teams that are challenging yet achievable with effort, often optimizing motivation and performance.

Alderfer's ERG Theory

A motivational theory that categorizes human needs into three groups: existential, relatedness, and growth needs, suggesting that when higher level needs are frustrated, individuals will revert to lower level needs.

Secure Job

A position of employment perceived to have a low risk of job loss and often includes steady pay and benefits.