If the Auditor Determines That Internal Controls Are Not Functioning

question 47

Multiple Choice

If the auditor determines that internal controls are not functioning as designed, and a compensating control does not exist, the auditor will assess control risk and the risk of material misstatement (RMM) as_______.

• A)high and set detection risk as low
• B)low and set detection risk as low
• C)high and set detection risk as high
• D)low and set detection risk as high

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Definitions:

Behaviorism

A psychological perspective focusing on observable behaviors and the external stimuli that influence them, often disregarding internal states.

Conditioned Stimulus (CS)

In classical conditioning, a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus (UCS)

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.

Behaviorist Perspective

A view in psychology that focuses on observable behaviors and the ways in which they're learned, rather than on internal states like thoughts or feelings.