In Addition to Evaluating the Frequency of Deviations in Tests

question 40

Multiple Choice

In addition to evaluating the frequency of deviations in tests of controls, an auditor should also consider certain qualitative aspects of the deviations. The auditor most likely would give broader consideration to the implications of a deviation if it was

• A) The only deviation discovered in the sample.
• B) Identical to a deviation discovered during the prior year's audit.
• C) Caused by an employee's oversight.
• D) Initially concealed by a forged document.

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Definitions:

Adjudicate

To adjudicate means to make a formal judgment or decision about a problem or disputed matter.

Administrative System

A framework that governs the organization and management of tasks, operations, and procedures within an institution or organization.

Exceeded Discretion

An action taken by a court or public official that goes beyond the limits of their given authority or powers.

License Revocation

The formal termination of a license, denying the license holder the legal right to engage in the activity previously authorized by the license.