Which of the Following Factors Can Mitigate Concerns That the Auditor

question 97

Multiple Choice

Which of the following factors can mitigate concerns that the auditor might otherwise have about a material weakness that was identified at an interim date?

• A) Remediation of the control deficiency after the interim date.
• B) Existence of a compensating control at the year-end date that was also present at the interim date.
• C) Weaknesses in the control environment.
• D) Ineffectiveness of oversight and governance.

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Definitions:

Bulk Purchasing

The process of buying goods in large quantities at a discounted rate to save money and increase profit margins.

Franchisors

Companies or individuals that grant the license to third parties to conduct business under their brand and operational model.

Ethical Business Conduct

The practice of conducting business in a manner that is morally right, honors principles of fairness and integrity, and respects the rights of all stakeholders.

Franchisee Bill of Rights

A set of principles intended to protect the interests and rights of franchisees in their relationship with franchisors.