Discuss the control structure elements of the COSO framework.
What will be an ideal response?
The elements that comprise the control structure include:
(1) Control environment-the tone or culture of a firm: "the control environment sets the tone of an organization, influencing the control consciousness of its people."
(2) Risk assessment-risks that may hinder the achievement of corporate objectives.
(3) Control activities-policies and procedures that support the control environment.
(4) Information and communications-directed at supporting the control environment through fair and truthful transmission of information.
(5) Ongoing monitoring-to provide assessment capabilities and to uncover vulnerabilities.
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A leader’s integrity comes into question when ______.
a. he engages in an act of commission b. he engages in an act of omission c. he engages in either an act of commission or an act of omission d. none of these
Adjusting entries affect cash flows in the current period
Indicate whether the statement is true or false
Most unhappy customers tell companies about their dissatisfaction either in a written or verbal manner.
Answer the following statement true (T) or false (F)
Tulley Manufacturing has an unfavorable direct labor rate variance. Which of the following would be the most likely reason for this variance?
A) The company used lower-paid workers in the production process than they had expected. B) Employees took a longer amount of time to produce the product than expected. C) The company gave employees an unexpected raise due to union negotiations. D) Employees used more direct materials in the production process than expected.