If Serious Control Deficiencies Are Detected Prior to Year-End and Management

question 6

Multiple Choice

If serious control deficiencies are detected prior to year-end and management implements changes to its systems to correct the deficiencies, the auditor:

• A) must retest the ITGC again to ensure no additional deficiencies exist.
• B) cannot rely on the ICFR in planning its financial statement audit.
• C) must test the changes made to the system to determine if the deficiency was resolved.
• D) All of the above.

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Definitions:

Canadian University

Higher education institutions located in Canada that offer undergraduate and graduate degrees in a variety of fields.

John Watson

A psychologist from America who founded the behaviorism school of psychology, which focuses on examining behaviors that are observable.

Governs Behaviour

Refers to principles or forces that influence or control actions and conduct.

Environment

The environment or situation where a human, animal, or plant exists or functions.