Senior Management Has Ordered a Compliance Audit of the Organization's

question 6

Multiple Choice

Senior management has ordered a compliance audit of the organization's employee benefits package.Which of the following do both the chief audit executive and senior management consider a primary engagement objective?

• A)The level of the organizational contributions is adequate to meet the program's demands.
• B)Individual programs are operating in accordance with contractual requirements and government regulations.
• C)Participation levels support continuation of individual programs.
• D)Benefits payments,when appropriate,are accurate and timely.

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Definitions:

Circular Flow Model

An economic model illustrating the continuous flow of money, resources, and goods among households and businesses in an economy.

Value Added

The increase in worth of a product or service as a result of a particular process, typically measured as the difference between the market price and the production cost.

Final Sales

The total value of all goods and services sold for final use, excluding intermediary transactions and unsold inventory.

Leakage

In economics, the term refers to a situation where income or resources exit an economy or system rather than being retained or reinvested.