Helen Noticed Employee Theft Has Increased

question 18

Multiple Choice

Helen noticed employee theft has increased. She has considered several options to deal with this loss. Which one of the following is likely to be the most effective concurrent control?

• A) Carefully screen job applicants using honesty testing.
• B) Publicly announce thefts when they are discovered.
• C) Dismiss any employee involved in theft.
• D) Publicize progress in reducing theft.

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Definitions:

Liabilities Section

Part of a financial statement that lists what a company owes to others, like loans and payables.

Goodwill

An accounting entry reflecting the premium paid above an entity's net asset value during a purchase, often associated with the value of brand recognition, patents, and exceptional workforce.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, and operating results of a parent company and its subsidiaries as one entity, reflecting the total economic activities.

Impairment Test

An assessment conducted to determine if the value of an asset is less than its carrying amount, indicating the need for an impairment charge.