5 Which of the following would not be considered a failure i

5. Which of the following would not be considered a failure in the operation of internal control as per the definition of \"a control deficiency\" in AU 265? [Hint: Think of operation versus design] a. Inadequate procedures for safeguarding assets b. Misapplication of control procedures. c. Evidence of manipulation, falsification, or alteration of accounting records. d. Failure to perform part of the internal control.

Solution

Correct Answer (C ) Evidence of manipulation, Falsification or alteration of accounting records.

Reason

A failure in the operation of internal control is when a control is deficient and not giving required results or controls are not effective or not implemented properly. An internal control is designed to detect or correct any error or misstatements a timely basis.