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When a Compensating Control Exists,a Weakness in the System

Question 23

Multiple Choice

When a compensating control exists,a weakness in the system


A) is no longer a concern because the potential for misstatement has been sufficiently reduced.
B) is reduced but not removed;therefore,it is still of concern to the auditor.
C) could cause a material loss,so it must be tested using substantive procedures.
D) is magnified and must be removed from the sampling process and examined in its entirety.

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