A ________ is a material deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement in the annual or interim financial statements will not be prevented or detected.
A) material control failure
B) material control deficiency
C) critical control deficiency
D) critical control failure

Question

Quizplus · Accepted Answer

A material control deficiency is a weakness in internal control that increases the risk of material misstatements in financial reporting. It is more severe than a minor control deficiency and less severe than a critical control deficiency. A critical control deficiency is a deficiency, or combination of deficiencies, that seriously impairs a company's ability to achieve its objectives and prevent material misstatements in the financial statements. Therefore, the most appropriate choice for the given definition is material control deficiency.

A ________ Is a Material Deficiency, or Combination of Significant