rnover? Norvs: We haven’t had a problem with employee turnover. We expect some turnover in this type of business and knows how to deal with it. We try to prevent any employee concerns by maintaining an open-door policy and encouraging employees who have questions or concerns about their responsibilities to ask for help or come talk with us. If a problem should arise that might affect others, May or I will immediately address the problem at the monthly office meeting, making all employee aware of the issue. Both May and I work hard to ensure that any problem is resolved promptly.   Norvs leaves for a while to give an estimate and Shelly continues her observations of the business.   The Company seems to have no problem with employee turnover because it has strong: Group of answer choices Integrity and ethical values communication and enforcement Management’s philosophy and operating style Board of directors/audit committee participation Human resources policies and practices

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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47.

Shelly is an internal audit manager of Air Clean and Safe Express, Inc., a publicly listed company,  which provides general air conditioner cleaning and maintenance services to its industrial and residential customers.  This will be the first time that the company will be audited. Thus, Shelly does not have any previous working file to review. Shelly recently conducted a preliminary interview with Mr. Norvs Gorgeous, who along with his sister, Ms. May Gorgeous owns the company.

 

Interview with Auditee (Independent Situation)

Shelly: What about employee turnover?

Norvs: We haven’t had a problem with employee turnover. We expect some turnover in this type of business and knows how to deal with it. We try to prevent any employee concerns by maintaining an open-door policy and encouraging employees who have questions or concerns about their responsibilities to ask for help or come talk with us. If a problem should arise that might affect others, May or I will immediately address the problem at the monthly office meeting, making all employee aware of the issue. Both May and I work hard to ensure that any problem is resolved promptly.

 

Norvs leaves for a while to give an estimate and Shelly continues her observations of the business.

 

The Company seems to have no problem with employee turnover because it has strong:

Group of answer choices
Integrity and ethical values communication and enforcement
Management’s philosophy and operating style
Board of directors/audit committee participation
Human resources policies and practices
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