If the Auditor Determines That an Effective Compensating Control Does

question 76

Multiple Choice

If the auditor determines that an effective compensating control does not exist, or tests of controls show that the compensating control is not functioning as designed, _______.

• A)the auditor revises the overall audit risk assessment for the related account and assertion, and the planned audit strategy
• B)the auditor makes no changes to the overall audit risk assessment for the related account and assertion, and the planned audit strategy
• C)the auditor concludes that internal control is weak, and issues an appropriate opinion
• D)the auditor would lower inherent risk surrounding the engagement as a whole

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Definitions:

Ethnic Diversity

The presence of a wide range of cultures, ethnic groups, and races in a community or organization, leading to a variety of viewpoints and experiences.

Identity Issues

Refers to conflicts or uncertainties about one's role, goals, abilities, or social affiliations.

Discrimination

The unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Extended Period

A longer than usual duration of time dedicated to a particular activity, event, or condition.