An exception or deficiency found in a test of controls

A. indicates a financial statement misstatement.
B. indicates the likelihood of a misstatement.
C. indicates that the financial statements are fairly stated.
D. indicates that an adverse opinion is warranted on the audit of internal control.

The term test of controls can be defined as an audit procedure which is designed in such a way that it will help in evaluating the operational effectiveness of controls in correcting, preventing material misstatements at assertion level . So if any exception is found in the test of controls then it will likely indicate the likelihood of a misstatement .

An exception or deficiency found in a test of controls A. indicates a financial statement misstatement. B. indicates the likelihood of a misstatement. C. indicates that the financial statements are fairly stated. D. indicates that an adverse opinion is warranted on the audit of internal control.

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An exception or deficiency found in a test of controls

A. indicates a financial statement misstatement.
B. indicates the likelihood of a misstatement.
C. indicates that the financial statements are fairly stated.
D. indicates that an adverse opinion is warranted on the audit of internal control.