During the planning phase of an audit, an internal auditor preliminarily concluded that the controls for a process were adequately designed to manage the associated risk. Under what conditions might this preliminary assessment subsequently prove to be unreliable?
A) Compensating controls from other processes were not present.
B) Redundant controls are not in place to enhance well designed controls.
C) Entity level controls are informal and not consistently enforced.
D) Process controls were not developed from an existing key control checklist.

Question

Quizplus · Accepted Answer

Entity level controls that are informal and not consistently enforced can undermine the effectiveness of process-level controls, making the preliminary assessment unreliable.

During the Planning Phase of an Audit, an Internal Auditor