A Significant Deficiency

question 91

Multiple Choice

A significant deficiency:

• A)Differs from a material weakness in that it involves internal control over operations rather than internal control over financial reporting.
• B)Involves an amount of discovered misstatements greater than the amount used as the planning measure of materiality.
• C)Is identical to a material weakness except that it need not be communicated to those responsible for oversight of the company's financial reporting.
• D)Is less severe than a material weakness.

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Definitions:

Covariance

A measure of the degree to which two variables move in relation to each other. It can indicate if the movements are positively or negatively correlated.

Portfolio

A collection of financial investments like stocks, bonds, commodities, and cash equivalents owned by an individual or institutional investor.

Expropriation

The act of a government taking privately owned property, often without fair compensation, for the public good.

Foreign Exchange Transactions

Trades between different currencies, involving the exchange of currency from one country for that of another at an agreed rate.