The Assessment of Inherent Risk Requires Consideration of Matters That

question 12

Multiple Choice

The assessment of inherent risk requires consideration of matters that have a pervasive effect on the entity as a whole and matters that may affect only specific accounts.Which of the following is an example of a "pervasive effect" matter?

• A)Industry of operation.
• B)Susceptibility to misappropriation.
• C)Sensitivity of valuations to economic factors.
• D)All of the above.

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Definitions:

Multisource

This refers to obtaining information or feedback from multiple sources, often used in the context of performance appraisals to gather a comprehensive view.

360-Degree Feedback

A feedback process where an employee receives anonymous feedback from multiple sources, such as supervisors, peers, and subordinates, often including self-assessment.

Merit Pay

A pay increase awarded to employees based on their job performance as an incentive to motivate high achievement and productivity.

Performance Appraisals

An alternative term for performance evaluation, focusing on the analysis and review of an individual's job performance over a specific period, aiming to document achievements and identify areas for growth.