Green Light Test Questions Flashcards
1
Q
The risk that (1) a material error may pass through the client’s systems undetected, (2) transactions may be missed out completely or (3) transactions may be wrongly recorded is a definition of what?
A
Control risk because it is the clients controls that have gone wrong
2
Q
Internals controls are primarily designed to identify fraud.
True or false
A
False they are designed to minimise the risk of error or misstatement and may pick up on fraud in the process.
