Which of the Following Is Most Likely to Be Considered

question 29

Multiple Choice

Which of the following is most likely to be considered a material weakness in internal control?

• A)Immaterial fraud committed by senior management.
• B)Restatement of previously issued financial statements due to a change in accounting principles.
• C)Inadequate controls over non-systematic transactions.
• D)Weaknesses in risk assessment.

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Definitions:

Duplication of Payment

An error or fraud resulting in the repeated payment for a single invoice or service.

Individual Insurance

A type of insurance policy purchased by an individual to cover health, life, or other personal risks, distinct from group policies.

Group Health Insurance

A health insurance policy purchased by an employer or organization that covers the eligible individuals within that group, often at a reduced cost.

Subscriber

The person who has been insured; an insurance policyholder.