In Testing the Controls Established by Management, Auditors Should Be

question 115

Multiple Choice

In testing the controls established by management, auditors should be able to identify if there are high-risk areas for integrity violations. Auditor responsibilities for detecting integrity violations include all of the following EXCEPT:

• A) Auditors should evaluate the evidence and determine the appropriate course of action. An investigation may be warranted if indicators strongly suggest that integrity violations occurred.
• B) When significant control weaknesses are found, the auditor should conduct sufficient tests to determine if these weaknesses resulted in integrity violations. The level of testing should increase as the number or significance of control weaknesses increases.
• C) Auditors must not have the knowledge and skills to adequately identify when violations occurred.
• D) Auditors should notify the proper legal authorities, if warranted.

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Definitions:

Environmental Packaging

Packaging designed to minimize environmental impact, often through the use of recyclable or biodegradable materials.

Media Focus

The concentration of media coverage on specific topics, areas, or issues, influencing public perception.

Legal Developments

Changes or updates in the legal system, including new laws, judicial decisions, or legal interpretations.

Prior Probabilities

The likelihoods of different outcomes or hypotheses before new evidence is taken into account.