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:

Voltage

The electric potential difference between two points, which drives the flow of electric current in a circuit.

Current Flow

The movement of electric charge carriers in a conductor or space, typically measured in amperes.

Applied Voltage

The level of electric force applied over a circuit or component, causing current to begin moving.

Total Current

The overall flow of electricity in a circuit, measured in amperes, which is constant throughout a series circuit.