ACCA Advanced Audit and Assurance (AAA) Practice Exam

What type of controls may be overlooked by ICQs and ICEQs?

1. Only major industry-standard controls.

2. Unusual yet effective controls in specific contexts.

3. Controls that are universally understood.

4. Highly theoretical controls with no practical application.

The correct answer is: Unusual yet effective controls in specific contexts.

The selection of unusual yet effective controls in specific contexts as the correct answer highlights the importance of recognizing that internal control questionnaires (ICQs) and internal control effectiveness questionnaires (ICEQs) might not adequately address every unique control mechanism that an organization employs. ICQs and ICEQs are often structured around common industry standards and established best practices, which means that they might bypass or overlook controls that are tailored to specific situations or that have evolved organically within a particular organization. These unusual controls may be highly effective in mitigating risks or addressing specific needs that standard controls do not cover. Therefore, while ICQs and ICEQs provide a valuable framework for assessing control effectiveness, they can miss nuanced controls that don't fit neatly into traditional categories but could still play a crucial role in the organization's risk management strategy. Recognizing this aspect is critical for auditors who must evaluate the entire risk landscape of an organization, ensuring that both common and uncommon control measures are considered in their assessments for reliability and operational effectiveness.