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Client a Hires Part-Time Seasonal Employees to Perform Routine Accounting

Question 40

Multiple Choice

Client A hires part-time seasonal employees to perform routine accounting tasks during periods of high transaction volume. The employees frequently make mistakes, some of which are material, but these are usually detected by a supervisor who reviews their work. This arrangement in said to:


A) be a serious control problem .
B) be a serious problem with an effective compensating control.
C) be a serious problem without an effective compensating control.
D) require a qualified audit opinion regarding the ICFR.

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