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.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: When the auditor attempts to determine the
Q19: The procedures to test effectiveness of control
Q20: Control risk is a measure of the
Q21: The auditor may identify some risks that
Q22: The existence of advanced automated systems affects
Q24: When planning the audit,the auditor's decision on
Q25: When the auditor identifies opportunities for the
Q26: On the basis of audit evidence gathered
Q27: The Sarbanes Oxley Act has had consequences
Q28: Greenvale Construction Limited was started by four