Which of the Following Procedures Would Provide the Best Evidence

question 389

Multiple Choice

Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

• A) Observe the process.
• B) Review the trend in receivables write-offs.
• C) Ask the credit manager about the effectiveness of the function.
• D) Check for evidence of credit approval on a sample of customer orders.

---

Definitions:

Job Satisfaction

The level of contentment employees feel towards their job roles, considering aspects such as work environment, duties, and compensation.

Emotional Stability

A personality trait characterized by an individual's consistency in emotional reactions, with a high level meaning less prone to extreme emotional responses and greater resilience to stress.

Role Conflict

A situation in which there are incompatible demands placed upon a person relating to their job or social roles, causing stress or conflict.

Incompatible

Not able to exist or work together without conflict or problems due to differences.