Which of the Following Is the Best Reason Why the Auditors

question 46

Multiple Choice

Which of the following is the best reason why the auditors should consider observing a client's distribution of regular payroll checks?

• A)Separation of payroll duties is less than adequate for effective internal control.
• B)Total payroll costs are a significant part of total operating costs.
• C)The auditors did not observe the distribution of the entire regular payroll during the audit in the prior year.
• D)Employee turnover is excessive.

Grasp the significance of conformity in various social situations and the psychological mechanisms behind it.

Understand the distinctions and connections between conformity, obedience, and normative social influence.

Appreciate the ethical concerns and insights derived from classic social psychology experiments.

Identify the factors that may increase or decrease conformity and obedience in different contexts.

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Definitions:

Profitable Use

The utilization of resources or assets in a manner that generates a significant positive return or profit.

Insufficient Capacity

A situation where a company does not have enough resources, such as manpower or machinery, to meet current or future production demands.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount contributing to covering fixed costs and profit.

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.