Which one of the following represents a control deficiency?
A)A missing control that is required for achievement of objectives.
B)A control that operates as designed.
C)A control that ensures the reliability of financial reporting.
D)A control that does not prevent immaterial errors.

Question

Quizplus · Accepted Answer

A control deficiency refers to a missing or inadequate control that is necessary for the achievement of objectives. While controls that operate as designed or ensure reliability of financial reporting are desirable, they do not represent deficiencies unless they are missing or inadequate. Similarly, a control that does not prevent immaterial errors may still be effective in preventing material errors and would not represent a deficiency.

Which One of the Following Represents a Control Deficiency