Compensating Controls

question 28

Multiple Choice

Compensating controls

• A)occur before the transaction is complete.
• B)are controls used by management to offset the risk in another procedure.
• C)are used because it is cost effective to implement particular control procedures.
• D)if effective will prevent misstatements in a timely fashion.

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Definitions:

Placebo

A substance with no therapeutic effect, often used as a control in testing new drugs.

Fake Treatment

A placebo or sham treatment given to participants in research, which has no therapeutic effect.

Demand Characteristic

Cues in an experimental environment that communicate to participants how they are expected to behave.

Control Group

A control group in scientific experiments is the group of subjects that does not receive the treatment or experimental condition and is used as a benchmark to measure the effects of the treatment.