The minimum likelihood of loss involved in the consideration of a possible material weakness is:

Question

Quizplus · Accepted Answer

Material weakness refers to a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. Therefore, the minimum likelihood of loss involved in the consideration of a possible material weakness is reasonably possible. It means there is a more than remote chance that the weakness will result in a loss. "Probable" implies a likelihood of greater than 50%, which would mean that a material weakness has already occurred and is not just being considered. "Not considered" is not a relevant option as the question is specifically asking about the minimum likelihood of loss when considering a possible material weakness.

The Minimum Likelihood of Loss Involved in the Consideration of a Possible