An exception that is uncovered in a test of control is:
A) evidence that the financial statements are materially misstated.
B) justification for issuing the qualified opinion.
C) a financial statement misstatement.
D) an indication of the likelihood of misstatements in the financial statements.

Question

Quizplus · Accepted Answer

An exception in a test of control indicates a weakness in the internal control system, but it does not necessarily mean that the financial statements are materially misstated. Instead, it suggests a higher risk of material misstatement in the financial statements, which requires the auditors to perform further testing to determine the nature and extent of potential misstatements. Therefore, option D is the best answer as it reflects the purpose of the test of control to assess the risk of material misstatement in the financial statements.

An Exception That Is Uncovered in a Test of Control