A Critical Element of Control Is Monitoring

question 26

Multiple Choice

A critical element of control is monitoring. What is likely to happen if management fails to monitor an internal control?

• A) Necessary improvements will not be identified.
• B) Personnel are likely to stop observing the control.
• C) The inherent risk of an error will increase.
• D) The auditor is likely to assume the control is working when it might not be.

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Definitions:

Psychosocial Theory

A theory proposed by Erik Erikson that outlines eight stages of psychological development influenced by social interactions.

Freud's Psychoanalytic

A theory of personality development, founded by Sigmund Freud, that emphasizes unconscious processes, childhood experiences, and sexual and aggressive drives.

Cognitive Perspective

The approach that focuses on the processes that allow people to know, understand, and think about the world.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.