Which of the Following Statements Is Correct Regarding Corporate Compensation

question 244

Multiple Choice

Which of the following statements is correct regarding corporate compensation systems and related bonuses? 1. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control. 2. Compensation systems are not part of an organization's control system and should not be reported as such. 3. An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

• A) 1 only
• B) 2 only
• C) 3 only
• D) 2 and 3 only

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Definitions:

Central American Free Trade Agreement

A trade agreement aimed at reducing tariffs and trade barriers among the United States and Central American nations.

Ethical Considerations

Aspects of decision-making that involve evaluating the moral principles of right and wrong, often guiding conduct in professional and personal settings.

Decision-making Process

The steps involved in choosing among alternatives to reach a conclusion or resolve an issue.

International Business

Commercial transactions that occur across national borders, including trade, investments, and partnerships.