MGT 301 - Ch. 16 Smartbook

Employers have been held harmless for their employees violating regulations when they can provide they have taken which of the following steps? (Check all that apply.)

- Have quickly acted when notified of a complaint - Conducted employee and management training concerning those policies - Have a written policy that has been provided to each employee

Which of the following statements about managing the risk of an employee violating government regulations are correct? (Check all that apply.)

- Ignorance of the regulation in question is not an acceptable excuse. - Being proactive is the best way to avoid violating a regulation. - Business are financially responsible for employees who violate regulations.

Which of the following statements about insurance are correct? (Check all that apply.)

- Insurance provides a benefit by requiring a relatively small fee compared to the amount of loss that is possible - Not all risks are insurable - Insurance coverage is either not available or excessively expensive for common events

Which of the following are true of a properly conducted and independent internal audit? (Check all that apply.)

- It gives an analysis of the operational and financial performance of a company - It gives an assessment of a company's overall level of business risk

Identify the true statements about a properly conducted and independent internal audit. (Check all that apply.)

- It gives an objective assessment of a company's risk control structure - It gives a structured evaluation of a business's processes and controls

Which of the following statements about insurable value are correct? (Check all that apply.)

- Not all the value of a property has insurable value. - The value of land, excavation, and basements is not insurable. - It is the amount of an asset for which a company will write an insurance policy.

______ bonds repay employers for losses caused by dishonest or negligent employees.

Fidelity

Which of the following are considered in calculating the cost of property insurance? (Check all that apply.)

- The deductible amount - The property's insurable value - The policy's loss limits - The co-insurance amount required

Which of the following statements about joint ventures are correct? (Check all that apply.)

- There are a number of tax benefits to participants. - Each business keeps its own identity and continues to conduct its own business separately. - They are used to lower an individual company's risk.

Which of the following statements about fidelity bonds are correct? (Check all that apply.)

- They should be considered for employees who have access to large amounts of cash and other valuable assets. - They are also called dishonesty bonds. - These bonds have a scope of coverage, exclusions, and types of dishonesty not covered.

Which of the following statements regarding coverages are correct? (Check all that apply.)

- Workers' compensation, unemployment insurance, and vehicle liability are examples of coverages - General liability, product liability, a malpractice coverages are examples of coverages that are not required, but can be purchased - They are required by law to provide social protection from harm caused to employees, customers, and uninvolved individuals

Which of the following statements are what business owners should to ensure that an audit meets their goals? (Check all that apply.)

- Write an engagement agreement that clearly establishes the scope of work to be done. - Meet privately with the internal auditor - Provide sufficient authority to the auditor to ensure that the audits goals can be accomplished - Establish that the owner and the board have the final authority to review and approve the audit plan