alleryStart learning →What should be put in place when duties cannot be separated in a small company?
ACompensating controls
BHigher staff bonuses
CA new company logo
DA second tax audit
Answer & Solution
Correct answer: A. Compensating controls
Compensating controls reduce the risk of an existing or potential control weakness when duties cannot be split.
Keep practising Risk Assessment and Internal Control
Browse all Risk Assessment and Internal Control questions for CA Final, or explore more Auditing topics.
Related questions
Which is correct about auditors and internal control?The COSO risk assessment component involves what?A payables system matches order, receipt and invoice before paying. Which objective?Maintaining documentation to substantiate transactions is which control activity?Why did the IASB decline a uniform numeric materiality threshold?Materiality is reassessed at the conclusion of the audit before the report is issued. WhatWhat is the purpose of setting performance materiality?Which expression gives audit risk in the audit risk model?