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:

Subliminal Stimuli

Stimuli that are below the threshold of conscious perception but can influence thoughts, feelings, or actions.

Conscious Awareness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Subliminal Perception

The processing of information by the brain that occurs below the level of conscious awareness.

Absolute Threshold

The minimum intensity of stimulation that must occur before you experience a sensation.