CPA-AUDITING practice question 21 of 35
Which of the following factors should an auditor consider in making a judgment about whether a control deficiency is a significant deficiency? I. The likelihood that a control will fail to prevent or detect a misstatement. II. The magnitude of the misstatement that could result from the deficiency.
Full set: 1,026 questionsCorrect Answer:
<P>C</P>
Explanation
Choice "c" is correct. When evaluating whether a control deficiency is a significant deficiency or a material weakness, the auditor should consider both the likelihood and magnitude of any potential misstatement. Choices "a", "b", and "d" are incorrect, based on the Explanation: above.
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