What greatly increase the control risk while managing audit


Problem: What situation would most likely represent an internal control environment where the external auditors would greatly increase the control risk while managing an audit? Group of answer choices An organization that has been previously fined by the SEC for earnings manipulations and has reduced capital investment for long-term projects. An organization where management routinely emphasizes the importance of long-term growth and earnings, and where a comprehensive code of ethics and controls is utilized. An organization where there were ethics violations 10 years ago under previous management, but new management and board members have significantly strengthened the internal controls. The control environment is assessed by internal auditors at the organization, so external auditors are not usually concerned with testing the control environment.

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Auditing: What greatly increase the control risk while managing audit
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