An Internal Control Exception Is

question 5

Multiple Choice

An internal control exception is:

• A)only expected to exist when internal controls are effective
• B)an observed condition that provides evidence that the control being tested did not operate as indicated
• C)both a and b
• D)an observed condition that provides evidence that the control being tested did operate as indicated

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Definitions:

Social Security

A government program that provides financial assistance to individuals during retirement, disability, or upon the death of a breadwinner.

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Federal Income Tax

A tax levied by the government on the annual earnings of individuals, corporations, trusts, and other legal entities.