Compensating Controls

question 15

Multiple Choice

Compensating controls

• A)occur after the transaction is complete.
• B)are controls used by auditors 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:

Insanity Defense

A legal defense stating that a defendant was unable to understand the nature of their actions or distinguish right from wrong due to a mental disorder at the time of the crime.

Social Factors

Elements within society, such as family, education, income, and religion, that influence an individual's life choices and opportunities.

Historical Factors

Elements from the past that influence current conditions or events, often used in the context of evaluating health or psychological issues.

Justice System

The combination of institutions, procedures, laws, and codes that a society uses to enforce legal norms and adjudicate law.