Which of the Following Audit Findings Would Have the Least

question 394

Multiple Choice

Which of the following audit findings would have the least impact (either positive or negative) on a department's control environment?

• A) The department makes long-term investment risk decisions to maximize return on investment.
• B) The department manager sets and demonstrates a tone of honesty and integrity in all business dealings.
• C) Many department functions are duplicated or verified by other department employees.
• D) Deficiencies were found in the appropriate authorization of transactions.

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Definitions:

Adam Smith

A Scottish economist and philosopher, best known for his theories on free market economics and the ‘invisible hand’ concept.

Peasants

Historically, members of the lower social class in rural areas, typically farmers who own or rent small plots of land for cultivation.

Legitimate Power

Authority that is recognized and accepted by others within an organizational or social structure, often derived from an official position or role.

Tyranny

Rule by those who wield their power oppressively and abusively.