Which of the Following Items Would Appear in a Management

question 48

Multiple Choice

Which of the following items would appear in a management letter of representation?

• A)That a physical inventory was taken,and properly valued.
• B)That the control systems are operating effectively.
• C)That management has adequate insurance to ensure its ongoing operations.
• D)That all financial records and related data were made available to the auditors.

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Definitions:

Performance Incentive

A reward system designed to encourage workers to achieve specific performance targets.

Perverse Incentive

A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the interests of the incentive makers.

Budget-gaming Problem

A situation in budgeting where individuals or departments manipulate figures or withhold information to secure budgetary advantages.

Compensation Schedule

A structured plan that outlines the timing and amounts of payments for work performed, damages, or other compensations.