The Major Limitation with the Observation Technique for Testing Controls

question 1

Multiple Choice

The major limitation with the observation technique for testing controls is that:

• A) the employee may not be truthful in telling the auditor how the control procedure is performed.
• B) the employee may perform the control procedure more diligently when they know they are being observed.
• C) Both a and b
• D) None of the above.

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Definitions:

Strategic Planning

The process of defining an organization's strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Marketing Structure

The framework within which marketing activities and functions are organized, including the distribution channels, market segmentation, and strategies used to reach target customers.

Centralized Marketing Structure

An organizational approach where marketing decision-making and processes are managed from a single, central point within the company.

Marketing Activities

Tasks and strategies businesses use to promote and sell their products or services to their target audience.