A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is
A) identify the absence of key controls.
B) consider the possibility of compensating controls.
C) determine potential misstatements that could result.
D) identify existing controls.

Question

Quizplus · Accepted Answer

The first step in the five-step approach to identifying deficiencies, significant deficiencies, and material weaknesses is to identify existing controls. This serves as a baseline to determine any deficiencies or weaknesses in the control environment.

A Five-Step Approach Can Be Used to Identify Deficiencies, Significant