Which of the following would be an example of an operating deficiency?
A) The control operates as intended but the person assigned to perform the control lacks sufficient knowledge.
B) The control fails to detect material misstatements.
C) The control fails to detect material misstatements on a timely basis.
D) The control fails to prevent material misstatements on a timely basis.

Question

Quizplus · Accepted Answer

An operating deficiency occurs when a control is designed properly but is not operating as intended because the person responsible for the control lacks the necessary knowledge or skills. This is different from the control itself being ineffective at detecting or preventing misstatements, which would be a design deficiency.

Which of the Following Would Be an Example of an Operating