If the Evidence About Internal Controls Does Not Support a Previous

question 51

Multiple Choice

If the evidence about internal controls does not support a previous conclusion regarding internal controls, the auditor should _______.

• A)reassess internal controls at a higher level, and reevaluate the implications of a high control risk assessment on detection risk and the auditor's audit strategy
• B)reassess internal controls at a lower level, and reevaluate the implications of a high control risk assessment on detection risk and the auditor's audit strategy
• C)consider the use of specialists to test the client's system of internal control
• D)wait until the end of the audit to perform further testing

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Definitions:

M'Naghten Rule

A legal principle defining the insanity defense by assessing if a defendant was incapable of understanding the wrongness of their action due to a mental disorder at the time of the crime.

Legally Insane

A legal term indicating a person's inability to understand the nature of their actions or distinguish right from wrong due to mental illness.

Mental Disorder

A condition that affects a person's thinking, feeling, behavior, or mood, significantly impacting daily life and functioning.

Insanity Defense

A legal defense used in criminal trials arguing that the defendant was not responsible for their actions due to psychiatric illness at the time of the crime.