A deficiency in internal control design exists when
A)the person performing the control does not have the knowledge to perform the control effectively
B)a control is missing
C)the person performing the control does not have the authority to perform the control
D)a control does not operate as designed
E)a control does not operate as it should
F)both A and C
G)both B and D
H)both C and E

Question

Quizplus · Accepted Answer

A deficiency in internal control design exists when a control is missing or does not operate as designed. Therefore, choice B and D are correct. Choices A, C, and E refer to deficiencies in internal control operation, not design. Choice F refers to both deficiencies in operation and authorization, which is not related to the design of controls. Therefore, the best choice is G, which refers to missing controls and controls that do not operate as designed.

A Deficiency in Internal Control Design Exists When