When a Compensating Control Exists,a Weakness in the System

question 23

Multiple Choice

When a compensating control exists,a weakness in the system

• A)is no longer a concern because the potential for misstatement has been sufficiently reduced.
• B)is reduced but not removed;therefore,it is still of concern to the auditor.
• C)could cause a material loss,so it must be tested using substantive procedures.
• D)is magnified and must be removed from the sampling process and examined in its entirety.

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Definitions:

Product Endorsers

Individuals, often celebrities or experts, who promote a product or brand by recommending it or associating their image with it.

Advertising Technique

Strategies used by marketers to promote products, services, or ideas to consumers.

Emotional Dissonance

A state of conflict between experienced emotions and emotions expressed to conform to social norms or job requirements, often leading to stress.

Expressed Emotion

Expressed emotion entails the verbal and nonverbal expressions of mood or affect, often within familial or close interpersonal relationships.