A Systems Flowchart

question 35

Multiple Choice

A systems flowchart:

• A)Can help an auditor understand an organization's business processes as part of the third generic step of a financial statement audit.
• B)Can help an auditor verify all five financial statement assertions as part of the fourth generic step of a financial statement audit.
• C)Both can help an auditor understand an organization's business processes as part of the third generic step of a financial statement audit and can help an auditor verify all five financial statement assertions as part of the fourth generic step of a financial statement audit.
• D)Neither can help an auditor understand an organization's business processes as part of the third generic step of a financial statement audit nor can help an auditor verify all five financial statement assertions as part of the fourth generic step of a financial statement audit.

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Definitions:

Stock-Purchase Plans

Corporate programs allowing employees to buy shares of the company's stock, often at a discount, as part of their benefits.

Performance Incentive

A reward system designed to enhance motivation and improve worker productivity by providing bonuses or other benefits linked to achievement of specific goals.

Retention Tool

Strategies or practices employed by organizations to keep valuable employees and reduce turnover.

Productivity Measurement

The evaluation of the efficiency of a worker, machine, or system in converting inputs into useful outputs.