Which of the following is an exception that is uncovered in a test of controls?
A) justification for issuing the qualified opinion
B) evidence that the financial statements are materially misstated
C) an indication of the likelihood of misstatements in the financial statements
D) a financial statement misstatement

Question

Quizplus · Accepted Answer

An exception uncovered in a test of controls indicates a flaw or deficiency in the entity's internal control system, which may suggest an increased likelihood of misstatements in the financial statements, rather than direct evidence of a misstatement itself.

Which of the Following Is an Exception That Is Uncovered