Introduction:

When a compensating control is not considered, it can affect various aspects of the audit findings

and conclusions.

Impact on Workpapers:

Effect of the Control Weakness: The impact of the control weakness needs to be reassessed

considering the compensating control.

Conclusion on the Control Weakness: The overall conclusion about the severity of the control

weakness may change.

Recommendation for the Control Weakness: Recommendations may need to be adjusted based on

the new assessment.

Options Analysis:

Option A: Includes the effect, cause, and conclusion, but the cause might not change if it remains

relevant regardless of compensating controls.

Option B: Includes the effect, cause, and recommendation, but the cause might not change.

Option C: The effect, conclusion, and recommendation would likely need adjustments.

Option D: Includes cause, conclusion, and recommendation, but the cause might remain unchanged.

Conclusion:

The sections of the workpapers that most likely require changes are the effect of the control

weakness, the conclusion on the control weakness, and the recommendation for the control

weakness.

Reference:

Internal Audit Standards and Practice Guides