As organizations become larger, they tend to become more organic
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: The greater the size of the organization, the more mechanistic it tends to be. However, the relationship is not at all linear but rather seems to jump at certain levels in numbers of employees. An organization with fewer than 100 employees, for example, may be very organic, while adding just a few more employees could cause the organization to suddenly take on more mechanistic characteristics.
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Maverick spending is often promoted by top management as a way to improve the bottom line and break out of a purchasing cycle
Indicate whether the statement is true or false.
What role do external auditors play in a firm's financial reporting process?
What will be an ideal response?