An Auditor Concludes That the Internal Controls Are Operating Effectively

question 13

Multiple Choice

An auditor concludes that the internal controls are operating effectively when in fact they are not. This most likely would result in:

• A) reduced audit testing.
• B) increased detection risk.
• C) increased audit risk.
• D) All of the above.

---

Definitions:

Transparency

The practice of being open, honest, and straightforward about various company operations, ensuring no hidden agendas or conditions.

Disseminate Information

To disseminate information means to spread knowledge, news, or other data widely, ensuring it reaches a broad audience through various means, including digital and print media.

GAP Model

A framework for identifying and addressing gaps between customer expectations and experiences in service delivery.

Customers Expect

The anticipations or beliefs about the performance or services a customer expects from a product, service, or brand.