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You Are the Audit Manager for a New Audit Client

question 68

Essay

You are the audit manager for a new audit client. Your staff auditors are unsure of what constitutes a control deficiency. Discuss the definition of control deficiency. In your response include at least two examples of control deficiencies.


Definitions:

Money Saved

The portion of income that is not spent on consumption but kept aside for future use, emergencies, or investments.

Stock Variable

A quantifiable amount at a particular point in time, such as the amount of money in circulation.

Government Bonds

Debt securities issued by a government to finance its expenditure, promising to pay a specified interest rate and to return the principal at maturity.

Groceries

Items of food and other goods sold by a grocer or supermarket, typically for household consumption.

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