A Situation in Which the Design or Operation of a Control

question 55

Multiple Choice

A situation in which the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent or detect material misstatements on a timely basis is referred to as a:

• A)Control deficiency.
• B)Material weakness.
• C)Reportable condition.
• D)Significant deficiency.

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Definitions:

Finished Goods Inventory

Products that have completed the manufacturing process and are ready to be sold.

Budgeted Income Statement

A financial statement that projects the income and expenses for a specific period in the future, helping management with planning and decision-making.

Accrued Income Taxes

Accrued income taxes are taxes that a company has incurred but has not yet paid during the reporting period.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in value over time.