SU 9

Question 1

What’s a deficiency in design?

Answer 1

1.A control necessary to meet the control objective is missing
2. An existing control is not properly designed to meet control objectives (even if its operating as designed)
3.

Question 2

What is a deficiency in operations?

Answer 2

1. Properly designed control does not operate as designed.
2. The person performing the control does not possess the necessary authority or competence to perform the control effectively.
   Ex: mgmt override prevents a properly designed control from operating effectively.

Question 3

Communication to the board of directors is for the sole use of the board. T or G

Answer 3

True