Which of the following is least likely to represent a material weakness in internal control for Flynt Corporation?
A)Flynt Corporation's computer systems were not working properly for two days; consequently, employees needed to do all reconciliations manually.
B)Flynt Corporation's CFO was arrested last year for embezzling money from the entity.
C)For the current year, the auditor found a material misstatement in Flynt's sales recognition that was undetected by the internal controls.
D)Flynt's audit committee is deemed to be ineffective.

Question

Quizplus · Accepted Answer

A temporary issue with computer systems that lasts for only two days and requires manual reconciliation does not necessarily indicate a material weakness in internal control. Material weaknesses are more systemic issues that indicate a significant deficiency in the ability to record, process, summarize, and report financial data.

Which of the Following Is Least Likely to Represent a Material