An Auditor Is Evaluating a Client's Internal Controls

question 6

Multiple Choice

An auditor is evaluating a client's internal controls. Which of the following situations would be the most difficult internal control issue for an auditor to detect?

• A)The accounting staff neglects the control, due to increased transactions to be processed.
• B)The technology department writes a program that does not properly implement the control, due to a lack of understanding.
• C)Two employees, who work in different departments, are circumventing an internal control.
• D)Someone erroneously disables edit checks in a software program designed to identify control exceptions.

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Definitions:

Questionnaires

A research instrument consisting of a series of questions for the purpose of gathering information from respondents.

Delphi Method

A forecasting process framework based on the results of multiple rounds of questionnaires sent to a panel of experts.

Panel of Experts

A group of individuals with specialized knowledge or expertise in a particular field, convened to give advice or make decisions.

Sequence of Questionnaires

An ordered series of surveys or questionnaires presented to respondents, usually to track changes over time or gather data at different stages.