An internal control exception is:
A)only expected to exist when internal controls are effective
B)an observed condition that provides evidence that the control being tested did not operate as indicated
C)both a and b
D)an observed condition that provides evidence that the control being tested did operate as indicated

Question

Quizplus · Accepted Answer

An internal control exception is an observed condition that provides evidence that the control being tested did not operate as indicated. It is not only expected when controls are effective. Option C is incorrect as it combines both correct and incorrect information. Option D is also incorrect as it states that the control operated as indicated, which is opposite to what an exception means.

An Internal Control Exception Is