Internal Control Weaknesses Identified by an Auditor

question 94

Multiple Choice

Internal control weaknesses identified by an auditor

• A) decrease the level of substantive tests to be implemented by the auditor.
• B) increase the risk of material misstatements being undetected by the auditor's testing procedures.
• C) increase the risk of material misstatement being undetected by management's processes and controls.
• D) decrease the risk of material misstatements being undetected by the auditor's testing procedures.

---

Definitions:

Ring Gear

A large circular gear that engages with a smaller, driving gear or pinion, often found in the differential of a vehicle.

Sun Gear

A central gear around which planetary gears revolve in an automatic transmission or differential, part of a planetary gear set.

Planetary Carrier

A component within a planetary gear system that holds one or more gears in place as they orbit the central sun gear, distributing torque and rotation.

Planetary Pinions

Gears that orbit around a central gear in an automatic transmission or differential, typically found in complex machinery to achieve various gear ratios.