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:

Spinal Cord

The long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, acting as the principal pathway for transmitting information between the brain and the rest of the body.

Neurons

The fundamental units of the brain and nervous system responsible for receiving sensory input from the external world, processing this information, and sending commands to the body.

Brain

The organ located in the head of an animal that controls its actions, thoughts, feelings, and interactions with the environment; central to the nervous system.

Mood Molecule

A colloquial term often used to refer to serotonin, a neurotransmitter that is linked to regulating mood, emotions, and several other functions in the body.