During planning phase of a client’s financial audit, the CPA firm of Arthur Smith, LLP discovered a lack of segregation of duties between the programming and computer operating functions. As a result, the auditors expanded their Test of Controls phase of the audit. Following their review, the auditors concluded in their final report that sufficient compensating general controls provided reasonable assurance that internal control objectives were being met. Required What compensating controls are most likely in place?
During planning phase of a client’s financial audit, the CPA firm of Arthur Smith, LLP discovered a lack of segregation of duties between the programming and computer operating functions. As a result, the auditors expanded their Test of Controls phase of the audit. Following their review, the auditors concluded in their final report that sufficient compensating general controls provided reasonable assurance that internal control objectives were being met. Required What compensating controls are most likely in place?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During planning phase of a client’s financial audit, the CPA firm of Arthur Smith, LLP discovered a lack of segregation of duties between the programming and computer operating functions. As a result, the auditors expanded their Test of Controls phase of the audit. Following their review, the auditors concluded in their final report that sufficient compensating general controls provided reasonable assurance that internal control objectives were being met.
Required
What compensating controls are most likely in place?
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