Which of the following factors is not relevant when assessing identified internal control deficiencies?
A) Weaknesses in the control environment.
B) The absence of a material misstatement in the financial statements.
C) Volume of transactions affected by the deficiency.
D) Effectiveness of oversight/governance.

Question

Quizplus · Accepted Answer

The absence of a material misstatement in the financial statements is not relevant when assessing identified internal control deficiencies. The focus is on identifying weaknesses in the control environment, the volume of transactions affected by the deficiency, and the effectiveness of oversight/governance. Even if there has been no material misstatement, deficiencies in internal control may still result in errors or fraud that could have an impact on the financial statements in the future.

Which of the Following Factors Is Not Relevant When Assessing