Question: 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

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 concludes that internal control is weak, and issues an appropriate opinion

the auditor revises the overall audit risk assessment for the related account and assertion, and the planned audit strategy

the auditor would lower inherent risk surrounding the engagement as a whole

the auditor makes no changes to the overall audit risk assessment for the related account and assertion, and the planned audit strategy

If the auditor determines that an effective

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!

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...

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 concludes that...

Question 183 Processing auditor test data using the client's software application _______. -will allow the auditor to verify manual controls within the software application are functioning as...

Question: Question 183 Processing auditor test data using the client's software application _______. -will allow the auditor to verify manual controls within the software application are functioning...

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...

ACC 640 Project Two Guidelines and Rubric Scenario The auditing team of your CPA firm has performed an audit engagement for Keystone, which consists of testing financial statements, internal...

Sharon Gallagher (audit manager), Josh Thomas (audit senior), Ian Harper, and Suzie Pickering (both audit staff) are meeting to discuss their internal control assessment for Cloud 9. Sharon asks,...

An object moves along the x axis according to the equation x (t) = (3.00t2 - 2.00t + 3.00) m. Determine (a) The average speed between t = 2.00 s and t = 3.00 s, (b) The instantaneous speed at t =...

Consider the optimal choice of labor and leisure discussed in the text. Suppose a consumer works the first 8 hours of the day at a wage rate of $10 per hour, but receives an overtime wage rate of $20...

When the financial statements contain a material departure from GAAP that the auditor believes is Justified, where should the justification appear? In a footnote. In a paragraph added before the...

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...