ICAEW ARF · Chapter 4 · Question 10 of 12
Which of the following would NOT normally be included in an auditor's report to management on internal control deficiencies?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A statement that the auditor has identified all of the deficiencies in the company's internal control
Explanation
A report on deficiencies normally sets out each deficiency, its possible consequences and a recommendation. It also explains that the audit was not designed to identify all deficiencies, because the auditor considers controls only to the extent needed to design audit procedures. Claiming to have found all deficiencies would be misleading.
More Internal control systems and IT controls MCQs
- Q12What is the main purpose of a walk-through test?
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- Q3Which of the following is a detective control rather than a preventive control?
- Q4Which of the following combinations of duties shows the most serious lack of segregation of duties?