The span of control should be wide when
A. employees' access to information is restricted.
B. jobs are similar, and performance measures are comparable.
C. tasks are not clearly defined and instructions are ambiguous.
D. subordinates prefer close supervisory control to autonomy.
E. subordinates are poorly trained.
Answer: B
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An auditor most likely would limit substantive tests of sales transactions when control risk is assessed as low for the existence or occurrence assertions concerning sales transactions and the auditor has already gathered evidence supporting:
A. opening and closing inventory balances. B. cash receipts and accounts receivable. C. cutoffs of sales and purchases. D. receiving activities.
Income tax allocation procedures are applied to comply with the matching principle
Indicate whether the statement is true or false
In the ABC Inventory Classification approach, Class A items account for approximately what percentage of a firm’s spend?
a. 10% b. 20% c. 50% d. 80%
Tort issues are firmly ingrained in law and do not change
a. True b. False Indicate whether the statement is true or false