In IT Systems, If General Controls Are Effective, It Increases

question 83

True/False

In IT systems, if general controls are effective, it increases the auditor's ability to rely on application controls to reduce control risk.

Understand the concepts of elasticity of labor supply and demand and their relationship to the burden of payroll taxes.

Recognize the long-term effects of changes in individual income tax rates and corporate profits tax on prices and profits across sectors.

Identify how the structure of business ownership (corporations, partnerships, proprietorships) affects tax liabilities and reporting.

Understand the concept of excess burden and how it affects the efficiency of tax policies.

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Definitions:

Coherent

Characterized by a logical, consistent, and orderly connection of parts, making them understandable and clear.

Drive Theory

Zajonc’s theory that the physical presence of members of the same species instinctively causes arousal that motivates performance of habitual behaviour patterns.

Social Facilitation

The phenomenon that people perform tasks better or more efficiently in the presence of others than when alone.

Social Inhibition

The tendency for individuals to perform differently, usually worse, when in the presence of others than when alone.