SAS 109 Requires Auditors Obtain an Understanding of an Organization's

question 123

Essay

SAS 109 requires auditors obtain an understanding of an organization's control environment. Discuss two techniques that may be used to obtain such understanding.

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Definitions:

Performance Appraisals

A systematic evaluation of an employee's job performance and productivity in relation to pre-determined criteria and objectives.

Strategic Objectives

Specific, measurable goals aligned with an organization's strategic plan, aimed at achieving its long-term vision.

Performance Appraisal

The evaluation of an employee's job performance and feedback delivery about their accomplishments and areas for improvement.

Organizational Response

The way in which an organization reacts to internal or external stimuli, including challenges or opportunities.