What is a Control Deficiency?

Q: Give an example of a corrective control.

A: Internal Controls:   Internal controls are the controls established within an organization to check…

Q: What is the effect of a Significant Deficiency? What is it?

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: What is a Material Weakness?

A: Material Weakness: Material weakness is the often the result of deficiencies in one or more of a…

Q: How is EDI more than technology? What unique control problems may it pose?

A:

Q: What are the key limitations of an internal control system?

A: Internal Control: A mechanism to maintain the goals of an entity in terms of organizational…

Q: What does Vouching test?

A: Vouching is the process that involves reviewing of original evidence to check whether the…

Q: What is the risk of Incorrect Rejection?

A: Risk of incorrect acceptance of internal control reliability and risk of incorrect acceptance of…

Q: What is meant by the term antidilution? Give an example.

A: An increase in the earnings per share refers to anti-dilution. This results on account of the…

Q: Difference Between Traceability and Controllability?

A: Following is the answer to the given question

Q: What is management fraud?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: What is the relationship between tests of controls and substantive tests?

A: Audit Planning:   Audit planning is the first step in the auditing process. Auditor gathers all the…

Q: Explain Deficiency Judgment?

A: To borrow funds, borrower might be required to mortgage its property to the lender. In case that…

Q: What must occur if a Significant Deficiency is identified?

A: Definition:   Internal control: Internal control is a process which ensures continuous reliability…

Q: what are the conditions for classical immunization to be not effective?

A: Classical Immunization:- Classical immunization can be characterized as the formation of a fixed-pay…

Q: Discuss the differences between a control deficiency, a significant deficiency, a material weakness,…

A: Control deficiency: A control deficiency is a flaw in the functioning or design of a control system…

Q: What are some disadvantages of the APT?

A: APT is the abbreviation used for the arbitrage pricing theory. A theory or a model for asset pricing…

Q: Describe the difference between preventive controls and detective controls. What are examples of…

A: Control activities:   Control activities are more concerned about the protection of the resources…

Q: What is the risk of assessing Control Risk too low?

A: Definition:   Tests of controls: Tests of controls form the part of audit procedures to be…

Q: What happens when Control Risk is below the maximum level?

A:

Q: ) What deficiencies in IRR can be overcome by using MIRR?

A: Introduction : Internal rate of return, commonly referred to as the IRR, can be understood as the…

Q: What is Normal spoilage?

A: Definition:   Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage…

Q: Define control risk and detection risk. What is the difference between control risk and detection…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: potential bias in management's ncerns,

A: Option 1 is wrong because the management' bias in estimation calculations is to be considered to…

Q: What is hedging?

A: SOLUTION:- Hedging  refers to shielding of  investments. A hedge is an investment method which aims…

Q: What is the risk of Incorrect Acceptance?

A: Risk of incorrect acceptance: The risk that the sample selected by the auditor may show that there…

Q: What is Projected Misstatement?

A:

Q: What are the types of situations that result in troubleddebt?

A: Troubled debts can result in two different situations, which are as…

Q: What is required if a Material Weakness is identified?

A:

Q: What are (a) an internal control deficiency, (b) a significant deficiency, and (c) a material…

A:

Q: What is sensitive analysis?

A: Sensitive analysis is a method for predicting the outcome of a decision if a situation turns…

Q: What are valid weaknesses of NPO?

A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…

Q: What is the Allowable Risk of Over-reliance?

A: Auditor has to test the account balances and classes of transactions and has to do both control…

Q: What is the iceberg effect? How can CASE tools help to minimize this phenomenon?

A: The Iceberg Principle or Iceberg Theory is a hypothesis that proposes that we can't see or recognize…

Q: What is internal control?

A: Internal controls are policies incorporated by the Management to safeguard the assets of the…

Q: What does a deficiency judgment mean?

A: Deficiency judgement refers as if borrower takes money from a lender and he is  fails to return back…

Q: What are the components of the Control Environment?

A: Control environment refers to the set of policies, processes, standards, and actions of top-level…

Q: What is the internal control principle?

A: Internal control means to control and check everything related to management. It ensures that the…

Q: What is underpricing? Why is it used? What evidence do we have to support the belief that…

A: Underpricing is a common term used in Initial public offering of shares of a private company which…

Q: What is loss aversion?

A: What is loss aversion?

Q: What is anchoring bias?

A: Anchoring bias: Anchoring bias happens if persons depends on moreover on pre-existing data or the…

Q: What are some limitations of internal control?

A: The below-mentioned points indicate that every system has its frailties and despite such…

Q: What are practical weaknesses of NPO?

A: Organizations are described as business units which are established by the individuals, or group of…

Q: Which of the following is NOT an example of a significant deficiency in internal control?

A: Statement 2,3 and 4 are examples of significant deficiency in internal control as they are…