alleryStart learning →Control risk is assessed higher in an entity where what is true?
ADuties are clearly separated by role
BThe board meets monthly with staff
CSeparation of duties is not well defined
DRecords are retained for many years
Answer & Solution
Correct answer: C. Separation of duties is not well defined
Weak separation of duties means misstatements are less likely to be prevented, detected and corrected by the entity's own controls.
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