Which of the Following Statements Relating to Identifying Strengths and Weaknesses

question 122

Multiple Choice

Which of the following statements relating to identifying strengths and weaknesses in a system of internal controls are true? (choose two options)

• A)If the auditor identifies internal control weaknesses, the risk of material misstatements being undetected by management's processes and controls increases.
• B)The auditor typically performs additional substantive testing in the areas of internal control weakness in order to identify and quantify potential material misstatement.
• C)There is no link between weaknesses in internal controls (that is, observations that controls being tested did not operate as intended) and the level of substantive procedures required.
• D)When the auditor identifies internal control weaknesses, the auditor will consider a lower assessed level of control risk approach for assertions influenced by these weaknesses.

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Definitions:

Functional Near Infrared Spectroscopy

A non-invasive imaging technique that measures brain activity through hemodynamic responses associated with neural behavior.

Real-time Functional Magnetic Resonance Imaging

A neuroimaging technique that measures brain activity by detecting changes associated with blood flow in real time, allowing the observation of brain functions.

Electroencephalography

A non-invasive test that involves recording the electrical activity of the brain through electrodes placed on the scalp.