Which of the following is an inherent risk of issuing an opinion on the overall effectiveness of internal control?

Question

Options

• AThe results of individual engagements do not support a satisfactory opinion on the effectiveness of
• BThe results of the individual engagements do not support a positive assurance opinion on the
• CThe audit risk and associated legal implications increase
• DThe reliance on other assurance providers increases

• A
  12% (5)
• B
  5% (2)
• C
  59% (24)
• D
  24% (10)

Explanation

Issuing an opinion on the overall effectiveness of internal control inherently carries the risk of increased audit risk and associated legal implications. This is because the opinion represents a high level of assurance, and any errors or omissions in the underlying audit work can lead to significant consequences, including potential legal liability. Therefore, auditors must be thorough and ensure that their conclusions are well-supported by the evidence obtained during the audit

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