Shareholders Use Audit Reports to Monitor Management Performance

question 29

Multiple Choice

Shareholders use audit reports to monitor management performance. An example of an item that an audit report does NOT provide is:

• A) Reasonable assurance on reported information that might be used to provide justification for management's performance-based compensation.
• B) Access to foreign markets.
• C) An indication of whether or not a company has major in its internal control over financial reporting.
• D) Feedback on any ICFR material weaknesses that management may choose to use to improve operational or financial efficiency.

---

Definitions:

Employee Ambassadors

Employees who represent and promote their company's brand, values, and mission both inside and outside the organization.

Group Training

A process of educating or developing skills among a group of individuals simultaneously, often aimed at team improvement or cohesion.

Socialization Strategies

Approaches or methods used by organizations to integrate and acculturate new employees into the workplace culture and norms.

Organizational Culture

The shared beliefs, values, norms, and practices that guide the behavior of individuals within an organization and give it a distinct personality.