Which of the Following Is the Most Severe

question 49

Multiple Choice

Which of the following is the most severe?

• A)Material weaknesses in internal control.
• B)Significant deficiencies in internal control.
• C)Operational deficiencies in internal control.
• D)Each is equally severe because it could result in inaccuracies in financial reporting.

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Definitions:

Rational Person

An individual who systematically and logically evaluates options to make decisions that maximize their personal benefit or utility.

Present Value

The present worth of a sum of money or series of cash flows anticipated in the future, calculated using a certain rate of return.

Consumption Plan

An outline of how individuals or households intend to allocate their income towards consumption goods and services over a period.

Interest Rate

The cost of borrowing money or the reward for saving it, typically expressed as a percentage of the principal amount per year.