An exception or deficiency found in a test of controls:
A) indicates a financial statement misstatement.
B) indicates that a financial statement misstatement may be likely.
C) indicates that the financial statements are misstated.
D) indicates that an adverse opinion is warrarnted on the Audit of Internal Control.

Question

Quizplus · Accepted Answer

An exception or deficiency found in a test of controls indicates that a financial statement misstatement may be likely, but it does not necessarily mean that the financial statements are misstated or that an adverse opinion is warranted. The auditor will need to evaluate the significance of the exception or deficiency and determine the potential impact on the financial statements.

An Exception or Deficiency Found in a Test of Controls