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Explanation:
The correct answer is D.
Reperformance is not a factor that influences the effectiveness of control testing. Instead, it is one of the four types of control testing. Reperformance involves independently executing the controls to verify whether they are functioning as intended. While it is a method of control testing, it does not influence the effectiveness of the testing process itself. The effectiveness of control testing is determined by factors such as the independence of the testing party, the frequency of testing, and the scope and sample size of the test. Therefore, reperformance does not influence the effectiveness of control testing.
Choice A is incorrect. The independence of the testing party can significantly impact the effectiveness of control testing. If the party conducting the test has a vested interest in the outcome, it may lead to biased results and thus affect its effectiveness.
Choice B is incorrect. The frequency of testing also plays a crucial role in determining its effectiveness. Infrequent tests may not capture all potential risks or control failures, thereby reducing their efficacy.
Choice C is incorrect. The scope and sample size used for control testing can greatly influence its effectiveness as well. A narrow scope or small sample size might not provide an accurate representation of all possible scenarios, leading to ineffective controls.
Q.5081 Joseph Bolts, FRM, is a risk manager at the Bank of Baroda. In his recent presentation to the board of directors, Joseph highlights that while the firm strives to establish effective control testing, we have several factors that determine the level of this effectiveness. Which of the following factors does not influence the effectiveness of control testing?
A
The independence of the testing party
B
The frequency of testing
C
Scope and sample
D
Reperformance
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