As part of the audit of McGraw Enterprises, a global distributor of engine and other vehicle parts, the external auditors, DayGlo CPA Firm, are examining the client's system of internal controls, specifically controls related to credit sales and approvals. The credit manager has apprised the auditors that in certain cases, inventory has been shipped on credit terms to clients who have already exceeded their credit limit. Based on this finding, which of the following represents the auditors most likely conclusion? Entity level controls pertaining to sales and accounts receivable are deficient, as evidenced by goods shipped to clients who should not be receiving inventory shipments. At least some transaction level controls that pertain to the sales-receivables cycle are not operating effectively or as designed. As a result, the auditor will likely focus further audit attention in this area and notify those charged with governance of the deficiencies. The auditors are likely to conclude that clients who have received inventory shipments despite exceeding their credit limit have already been checked and approved by client staff, thus there is no need for the auditors to be concerned over this. This finding represents a weakness in IT general controls. The auditors will consult applicable generally accepted auditing standards to determine the best course of action, and may either issue a quailed opinion on this area or disclaim an opinion completely.