You Are Performing an Audit on North South Natural Gas

question 57

Essay

You are performing an audit on North South Natural Gas (NSNG). Alana, an NSNG employee, has responsibility for reconciling bank statements with the entity's cash accounts. You determine, however, that Alana has never been taught how to reconcile statements. In effect, the statements have not been properly reconciled for two years. How would you judge the significance of this control deficiency? How would you classify this deficiency?

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Definitions:

Psychosis

A mental disorder characterized by a disconnection from reality, often manifesting as hallucinations or delusions.

Remorse

A deep feeling of regret or guilt for a wrong committed.

Aggravated Assault

A physical attack that results in severe bodily injury, often involving the use of a weapon or other means to increase harm.

Hate Killer

An individual who commits murder motivated by hatred towards a particular group of people.