For a nonissuer, a control deficiency would be considered a significant deficiency when the likelihood and magnitude of potential financial statement misstatements are:

Question

Quizplus · Accepted Answer

Choice "C" is correct. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with GAAP such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected. Choices "A", "B", and "D" are incorrect, based on the above.

For a Nonissuer, a Control Deficiency Would Be Considered a Significant