Question
In the ‘recency error’ of performance
appraisal, the rating manager gives?Solution
Recency error is the rater’s tendency to allow more recent incidents (either effective or ineffective) of employee behavior to carry too much weight in evaluation of performance over an entire rating period. This can be extreme on both ends of the spectrum. Either an employee just finishing a major project successfully or an employee may have had a negative incident right before the performance appraisal process and it is on the forefront of the manager’s thoughts about that employee.
Which of the following is a primary objective of auditing?
A sale of Rs. 25,000 to A was entered as a sale to B. This is an example of _
Which of the following best describes analytical procedures as per SA 520?
Client has breached debt covenants; lender issued waiver valid for 9 months after balance sheet date. Auditor notes liquidity support from group company...
Process of verifying the documentary evidences of transactions are known as:
An auditor finds material misstatements due to fraud but the management refuses to take corrective action. What should be the auditor’s next step?
An auditor notices that a bank’s internal controls over loan approvals are weak, but substantive testing of balances shows no material misstatements. ...
________ the audit risks _________ the materiality and _______ the audit effort
Which of the following constitutes the most reliable audit evidence?
Late-year reinsurance treaties significantly reduce reported loss ratio. Which step is most relevant to fraud risk of “window dressing”?