Which of the Following Is a Weakness in Internal Control

question 3

Multiple Choice

Which of the following is a weakness in internal control that allows a reasonable possibility that a significant (but less than material) misstatement may occur and not be detected?

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

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Definitions:

Securities Markets

Platforms or locations where securities such as stocks and bonds are bought and sold.

Stock Price

The current price at which a share of company stock can be bought or sold in the stock market.

Sustainable Earnings

The portion of a company's profits considered to be repeatable, stable, and able to be maintained over the long term.

P/E Ratio

A valuation metric that compares a company's stock price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.