The Name of the Term Used to Describe Deficiencies in Internal

question 76

Multiple Choice

The name of the term used to describe deficiencies in internal control over financial reporting where there is a reasonable possibility that a material misstatement will not be detected on a timely basis is called:

• A) Significant deficiency
• B) Recklessness
• C) Material weakness
• D) Negligence

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Definitions:

Ideas

Mental concepts or thoughts that arise from the mind or intellectual processes.

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another, transmitted through languages, material objects, ritual, institutions, and art.

Legitimacy

The acceptance of an authority, often a governing law or régime, as being rightful and justified.

Power

The ability to influence or control the behavior of people, the outcome of events, or the distribution of resources within a society.