Atleast what level of probability of a material misstatement is required for a control deficiency to be considered a material weakness? A)More than remote. B)Probable. C)Reasonable possibility. D)Sufficient.

Question

Quizplus · Accepted Answer

A control deficiency is considered a material weakness if there is a reasonable possibility that a material misstatement will not be prevented or detected on a timely basis. This level of probability is higher than a remote possibility, but lower than a probable possibility or a sufficient level of probability. Therefore, the best choice is C, reasonable possibility.

Atleast What Level of Probability of a Material Misstatement Is