When One Material Weakness Is Present at the End of the Year

question 108

Multiple Choice

When one material weakness is present at the end of the year, management of a public company must conclude that internal control over financial reporting is

• A) insufficient.
• B) inadequate.
• C) ineffective.
• D) inefficient.

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Definitions:

Functional Operating Teams

Groups within an organization that are organized around specific functions or tasks, designed to contribute efficiently to the company's overall objectives.

Elected Leader

An individual chosen through a democratic process to assume a position of authority and direction over a group.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony in decision-making results in an irrational or dysfunctional outcome.

Cohesive Group

A group characterized by a strong sense of unity and togetherness, often leading to more effective teamwork.