As the Acceptable Level of Detection Risk Decreases, the Assurance

question 28

Multiple Choice

As the acceptable level of detection risk decreases, the assurance directly provided from:

• A)substantive tests should increase.
• B)substantive tests should decrease.
• C)tests of controls should increase.
• D)tests of controls should decrease.

Understand the health care continuation coverage provisions under COBRA.

Identify the characteristics and purposes of managed care programs.

Understand the concept of plan vesting and its implications for employees.

Recognize the tax implications of deferred compensation under ERISA.

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Definitions:

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date.

Borrower

An individual or entity that takes money or property from another under an agreement to return it or its equivalent at a future date.

Creditor

An entity or person to whom money is owed by a debtor for goods supplied or loans given.