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:

Financial Cooperatives

Member-owned financial institutions that provide savings, credit and other financial services to their members.

Commercial Banks

Commercial banks are financial institutions that accept deposits, offer checking account services, and make loans to individuals and businesses.

Horizontal Merger

A business consolidation that occurs between two firms that operate in the same industry, often aimed at increasing market share and reducing competition.

Conglomerate Merger

A type of merger where two companies that operate in entirely different industries combine resources or operations.