When Analyzing Exceptions, the Auditor Should Keep in Mind That

question 42

Multiple Choice

When analyzing exceptions, the auditor should keep in mind that

• A) all exceptions must be reported to management.
• B) they should determine the breakdown in the internal controls that allowed the exceptions to occur.
• C) the nature of an exception and its causes have no effect on the qualitative evaluation of the system.
• D) exceptions do not need to be analyzed if it is too costly.

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Definitions:

Discharged For Cause

Refers to the termination of employment due to an employee's failure to meet specific job standards or misconduct.

Hybrid Rule Making

Hybrid rule making is a regulatory process that combines elements of formal rulemaking, involving public hearings, with informal procedures like written submissions.

Privacy Act Of 1974

A U.S. law established to regulate the collection, use, and dissemination of personal information by federal agencies.

Nonexempt Record

A document or piece of information that is not protected from disclosure under law, thus is available for public access.