Which One of the Following Was NOT a Finding in the Pacific

question 69

Multiple Choice

Which one of the following was NOT a finding in the Pacific Acceptance case?

• A) Audit programs should be updated each year.
• B) The auditors were entitled to rely on management representations.
• C) The auditors failed to use appropriate vouching procedures.
• D) Certain discoveries should have been communicated by the auditors to the board of directors.

---

Definitions:

Management By Objectives (MBO)

A management strategy in which employees set objectives that contribute to organizational goals, promoting alignment and engagement.

Setting Objectives

The process of establishing specific, measurable, achievable, relevant, and time-bound goals for an individual, team, or organization.

Operational Planning

The process of setting short-term objectives and determining the best methods to achieve them within the framework of the organization's overall strategic plan.

Intermediate Planning

A type of planning that focuses on setting objectives and strategies for a mid-term period, balancing between long-term visions and short-term actions.