Which of the following statements is true regarding internal controls?

The correct answer is B. Poorly designed or deficient entity-level controls can prevent well-designed process controls from. Entity-level controls set the tone and establish the framework for the overall control environment within an organization. If these controls are poorly designed or deficient, they can undermine the effectiveness of process-level controls, even if those controls are…

Performing the Engagement

Question

Options

AFor assurance engagements internal auditors should plan to assess the effectiveness of all entity-
BPoorly designed or deficient entity-level controls can prevent well-designed process controls from
CDuring engagement planning, internal auditors should not discuss the identified key risks and
DReviewing process maps and flowcharts is an appropriate method for the internal a auditor to

How the community answered

(62 responses)

A
3% (2)
B
79% (49)
C
13% (8)
D
5% (3)

Explanation

Entity-level controls set the tone and establish the framework for the overall control environment within an organization. If these controls are poorly designed or deficient, they can undermine the effectiveness of process-level controls, even if those controls are well-designed. Entity-level controls include governance, risk management, and compliance controls that influence the entire organization. Therefore, deficiencies at this level can have a widespread impact, preventing lower-level controls from functioning properly.

Topics

#entity-level controls#process controls#control assessment#internal control framework

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