An important judgment made on an integrated audit is determining whether deficiencies in internal control are material
Question:
An important judgment made on an integrated audit is determining whether deficiencies in internal control are material weaknesses, significant deficiencies, or are just control deficiencies.
Explain the way in which the following factors influence how a control deficiency is classified:
a. Weakness in the control environment.
b. Repeatability of the process.
c. Volume of transactions affected by the control deficiency.
d. Complexity and subjectivity of the area in which the control was supposed to be working.
e. Existence of complementary controls.
f. Remediation of control deficiency before year end.
g. Weaknesses in the oversight function of the board.
Step by Step Answer:
a Weakness is in the control environment Because weaknesses in the control environment are generally pervasive it is likely that such weaknesses will ...View the full answer
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
