In Smaller Companies Where Management's Interaction with Its Controls Provides

question 40

Multiple Choice

In smaller companies where management's interaction with its controls provides the basis for its assessment of ICFR, management should provide documentation of how its interaction provided it with sufficient evidence. Appropriate documentation includes:

• A) memos and emails with instructions and directions to and from management to company employees.
• B) evidence of formal, direct testing and ongoing monitoring evaluations.
• C) daily checklists and questionnaires indicating the extent of interaction and monitoring.
• D) All of the above are appropriate for small companies as well as larger companies.

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Definitions:

Transactional Leaders

Leaders who focus on the role of supervision, organization, and group performance; they are concerned with status quo and day-to-day progress toward goals, often employing a reward-punishment system.

Employee Satisfaction

The level of contentment employees feel regarding their job and workplace conditions, which can impact productivity and loyalty.

Bartering

A system of exchange in which participants in a transaction directly trade goods or services without using a medium of exchange, such as money.

Democratic Leader

A leadership style in which the leader makes decisions based on the input and consensus of the group, promoting participation and equality among team members.