Solved

When a Compensating Control Exists,a Weakness in the System

Question 2

Multiple Choice
When a compensating control exists,a weakness in the system
A)is no longer a concern because the potential for misstatement has been sufficiently reduced.
B)is reduced but not removed;therefore,it is still of concern to the auditor.
C)could cause a material loss,so it must be tested using substantive procedures.
D)is magnified and must be removed from the sampling process and examined in its entirety.

When a compensating control exists,a weakness in the system


A) is no longer a concern because the potential for misstatement has been sufficiently reduced.
B) is reduced but not removed;therefore,it is still of concern to the auditor.
C) could cause a material loss,so it must be tested using substantive procedures.
D) is magnified and must be removed from the sampling process and examined in its entirety.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents