When a Compensating Control Exists, the Absence of a Key

question 30

Multiple Choice

When a compensating control exists, the absence of a key control

• A) is no longer a concern because there is no longer a significant deficiency or material weakness.
• B) is still a major 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.

---

Definitions:

Multiple Sclerosis

A chronic autoimmune disease where the immune system attacks the protective covering of nerves, disrupting communication between the brain and the rest of the body.

White Blood Cells

Cells of the immune system involved in defending the body against both infectious disease and foreign materials.

Myelin

Fatty material produced by neuroglial cells; insulates axons and thus speeds conduction of action potentials.

Neuroglial Cells

Supportive cells in the nervous system that provide insulation, nutrients, and structural support for neurons, and participate in signal transmission.