If the Controls Necessary to Satisfy Any One of the Objectives

question 52

Multiple Choice

If the controls necessary to satisfy any one of the objectives are inadequate, the likelihood of errors related to that objective:

• A) may be decreased if management is aware of the poor controls.
• B) is indeterminate.
• C) may be increased if the controls for other objectives don't mitigate it.
• D) is increased, regardless of the controls for the other objectives.

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Definitions:

Pretax Income

The amount of income a company generates before any taxes are deducted, also known as earnings before taxes (EBT).