Which one of the following represents a classification of control deficiency by the PCAOB?
A)A missing control that is required for achievement of objectives.
B)A control that operates as designed.
C)A control that ensures the reliability of financial reporting.
D)An immaterial individual misstatement in internal control.

Question

Quizplus · Accepted Answer

The PCAOB has identified five categories of control deficiencies, including Missing, Inadequate, Ineffective, Incomplete, or Not properly designed. Option A, a missing control that is required for achievement of objectives, falls under the category of Missing. Option B, a control that operates as designed, falls under the category of Effective. Option C, a control that ensures the reliability of financial reporting, is not a specific classification identified by the PCAOB. Option D, an immaterial individual misstatement in internal control, is not specific enough to be classified by the PCAOB.

Which One of the Following Represents a Classification of Control