An Auditor Determines That There Is an Inherent Risk That

question 41

Multiple Choice

An auditor determines that there is an inherent risk that dividends may be recorded and paid before being declared. This determination is most likely tied to which of the following management assertions?

• A)Completeness.
• B)Presentation and disclosure.
• C)Valuation.
• D)Existence.

---

Definitions:

Employee Demographics

Statistical data relating to the characteristics of workers in an organization, such as age, gender, education level, and ethnicity.

Communal Culture

A culture within an organization or community that emphasizes shared values, goals, and practices.

Company Diversity

Refers to a workplace that includes a wide range of differences among its employees, such as ethnicity, gender, age, religion, sexual orientation, and cultural background.

Cultural Obstacles

Barriers related to cultural differences that hinder progress in negotiations, communication, and understanding between individuals or groups.