- 4 Marks
AA – Dec 2022 – L2 – Q5e – Audit and Assurance Risk Environment
Lists four factors an auditor may consider when determining whether deficiencies in internal control are significant.
Question
The significance of a deficiency or a combination of deficiencies in internal control depends not only on whether a misstatement has actually occurred, but also on the likelihood that a misstatement could occur and the potential magnitude of the misstatement. Significant deficiencies may therefore exist even though the auditor has not identified misstatements during the audit.
Required:
State FOUR (4) matters that an Auditor may consider in determining whether a deficiency or combination of deficiencies in internal control constitutes a significant deficiency.
Find Related Questions by Tags, levels, etc.
- Tags: Auditor's Role, Corporate Governance, Deficiency, Internal Control, Risk Assessment
- Level: Level 2
- Topic: Audit and Assurance Risk Environment
- Series: DEC 2022
Report an error