Which of the Following Suggests a Weakness in the Internal

question 69

Multiple Choice

Which of the following suggests a weakness in the internal control environment?

• A) the firm has an up-to-date organizational chart
• B) monthly reports comparing actual performance to budget are distributed to managers
• C) performance evaluations are prepared every three years
• D) the audit committee meets quarterly with the external auditors

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Definitions:

Door-in-the-face Technique

A persuasion strategy where a large, unreasonable request is first made knowing it will be rejected, followed by a smaller, more reasonable request.

Standard-pitch Technique

A method in music production and performance concerning the consistent tuning of instruments to a standardized pitch.

That's-not-all Technique

A persuasion method where an offer is made, but before making a decision, an additional item or bonus is added to make the offer seem more appealing.

Door-in-the-face Technique

A compliance method whereby a large, unreasonable request is first made and expected to be refused, followed by a smaller, more reasonable request.