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.

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