GAGAS Requires Auditors to Report Deficiencies in Internal Control That

question 39

Multiple Choice

GAGAS requires auditors to report deficiencies in internal control that they consider to be reportable conditions. Examples of such reportable conditions include all of the following except:

• A) absence of appropriate segregation of duties consistent with appropriate control objectives.
• B) evidence of failure to safeguard assets from loss, damage, or misappropriation.
• C) absence of a sufficient level of control consciousness within the organization.
• D) failure to follow-up and correct previously identified deficiencies in internal control.
• E) absence of an efficient use of audit resources.

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Definitions:

Key Performance Indicators

Metrics used to evaluate the success of an organization or of a particular activity in which it engages.

Order Cycle Time

The total time from when a customer places an order until the product is delivered, used as a key performance indicator in supply chain management.

Logistics Service Metric

Quantitative measures used to track, analyze, and optimize logistics operations, ensuring the efficiency, effectiveness, and quality of supply chain processes.

Metric

A standard of measurement used to quantify results, performance, or behaviors in various contexts, including business, science, and everyday activities.