In evaluating internal control,the auditor is basically concerned that the system provides reasonable assurance that
A) Operational efficiency has been achieved in accordance with management plans.
B) Errors and fraud have been prevented, or detected and corrected.
C) Controls have not been circumvented by collusion.
D) Management cannot override the system.

Question

Quizplus · Accepted Answer

The primary focus of evaluating internal control is to ensure that errors and fraud have been prevented, or detected and corrected. While operational efficiency is important, it is not the main concern of the auditor when evaluating internal control. Additionally, controls can be circumvented by collusion, and it is possible for management to override the system if controls are not properly designed and implemented.

In Evaluating Internal Control,the Auditor Is Basically Concerned That the System