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:

Private-Sector Risk

The risk associated with the non-governmental sector, encompassing uncertainties in business environments, market dynamics, and financial operations.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating behavior of the marketplace where individuals pursuing their own interest often benefit society as a whole.

Government Resource Allocation

The process by which government entities decide how to distribute resources and funds between various projects or sectors.

Competitive Forces

The external factors that influence the competitive position of a firm within an industry, including competition from rivals, potential new entrants, substitute products, bargaining power of suppliers, and bargaining power of customers.