An Audit Team Most Likely Would Assess Control Risk at the Maximum

question 71

Multiple Choice

An audit team most likely would assess control risk at the maximum if the payroll department supervisor is responsible for

• A)Examining authorization forms for new employees.
• B)Comparing payroll registers with original batch transmittal data.
• C)Authorizing payroll rate changes for all employees.
• D)Hiring all subordinate payroll department employees.

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Definitions:

Convergence Theory

A theory suggesting that group members' opinions tend to become more similar over time as they interact and exchange ideas.

Contagion Theory

A theory suggesting that emotions and behaviors can spread through groups as if they were infectious diseases.

Rumors

Unverified information or stories spread informally, typically reflecting people’s desires to understand or make sense of their social environment.

Mass Hysteria

A phenomenon where a group of people exhibit similar hysterical symptoms or behaviors, often as a reaction to fear, rumor, or unknown events.