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:

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Liked

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Shadowing

An on-the-job learning technique where a person learns by following and observing a more experienced individual.