In Connection with the Audit of Financial Statements, an Independent

question 64

Multiple Choice

In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if

• A) statistical sampling techniques were not used on the audit engagement.
• B) the auditor planned the audit in a negligent manner.
• C) accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier.
• D) the fraud was perpetrated by one employee who circumvented the existing internal controls.

Explain the concept of strategic compensation and its importance in aligning organizational goals with employee performance.

Describe various incentive schemes and their effectiveness in motivating employees.

Analyze the role of profit-sharing plans in organizational profit growth and employee motivation.

Discuss concerns related to executive compensation and its relationship to organizational performance.