An Auditor Is Concerned About a Policy of Management Override

question 32

Multiple Choice

An auditor is concerned about a policy of management override as a limitation of internal control. Which of the following tests would best assess the validity of the auditor's concern?

• A)Matching purchase orders to accounts payable.
• B)Verifying that approved spending limits are not exceeded.
• C)Tracing sales orders to the revenue account.
• D)Reviewing minutes of board meeting.

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Definitions:

Influenced

pertains to being affected, shaped, or altered by someone or something else.

Social Exchange

A theory suggesting that human relationships and social interactions are based on the exchange of resources, rewards, and benefits.

Tailoring Communication

The practice of adjusting one's style of communication to fit the specific needs of the audience or situation.

Interpretations

The process of assigning meaning to information or events, often subjective and based on individual perspectives.