An auditor is evaluating a client's internal controls. Which of the following situations would be the most difficult internal control issue for an auditor to detect?
A)The accounting staff neglects the control, due to increased transactions to be processed.
B)The technology department writes a program that does not properly implement the control, due to a lack of understanding.
C)Two employees, who work in different departments, are circumventing an internal control.
D)Someone erroneously disables edit checks in a software program designed to identify control exceptions.

Question

Quizplus · Accepted Answer

It can be difficult for an auditor to detect collusion between employees who work in different departments and are circumventing an internal control. The other options involve neglect, lack of understanding, or errors in implementation, which may be more visible or easily detectable during an audit.

An Auditor Is Evaluating a Client's Internal Controls