Question: If tests of controls indicate that a key control is not functioning as designed, and if other compensating controls do not exist, the auditor should

If tests of controls indicate that a key control is not functioning as designed, and if other compensating controls do not exist, the auditor should
increase the assessed level of control risk.
decrease the level of answed detective risk.
make appropriate changes to the nature, timing and eatent of substantive bests related to the assertion.
All of these annwer choices are correct.
If tests of controls indicate that a key control

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Trina's Trinkets Inc. (Trina's) is a corporation incorporated and headquartered in Orem, Utah. Trina's sells more than 3,600 different types of small trinkets and gifts, primarily to the end...

Q:

Question 21 3pts If tests of controls indicate that a key control is not functioning as designed, and if other compensating controls do not exist, the auditor should _______. Group of answer choices...

Q:

27. If the audit firm is performing an integrated audit for a public company, A. there is an expectation that the auditor will test controls in order to support an opinion on Internal Control over...

Q:

Which of the following would be an option by the auditor if tests of controls indicate that a key control is not functioning as designed? Select one: a. Increase the level of assessed detection risk...

Q:

QUESTION 36 If the auditor determines that an effective compensating control does not exist, or tests of controls show that the compensating control is not functioning as designed the auditor would...

Q:

After running tests of control, Javier found that a key control is not functioning as designed. He also noted the lack of other compensating controls. To address this issue, Javier should do all of...

Q:

1.During an audit of a private company's financial statements, an auditor should perform tests of controls to obtain sufficient appropriate audit evidence about the operating effectiveness of...

Q:

Could you please answer these 20 multiple choice questions 1.If controls are tested by the auditor at the interim date, what is the auditor's responsibility at year end as it relates to control...

Q:

Could you please answer these 20 multiple choice questions 1.If controls are tested by the auditor at the interim date, what is the auditor's responsibility at year end as it relates to control...

Q:

Question 21 Tests of controls are performed to determine whether: Controls are operating as designed. Material errors exist. Current ratios are within loan covenant requirements. Company net income...

Q:

If the auditor determines that internal controls are not functioning as designed, and a compensating control does not exist, the auditor will assess control risk and the risk of material misstatement...

Q:

Common problems caused by a battery-operated and how you can solve it to help society and the environment?

Q:

1. Mr. Roberts is a risk taker. Which share is he most likely to invest in and why? 2. Mr. Jones is risk-averse. Which share is he most likely to invest in and why? 3. Mr. Philips wants to make the...

Q:

In the problem above, what risk does a bank have if interest rates increase? a . No risk. Banks hedge for interest rate risk. b . Solvency risk c . Liquidity risk d . The value of the bank's equity...

Q:

What is SQL DROP TABLE Statement??