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If There Is More Than a Reasonable Possibility That a Material

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If there is more than a reasonable possibility that a material misstatement could result from a significant deficiency found during the audit, then that deficiency is considered a material weakness in internal control.


Definitions:

False Alarm

An incorrect signal indicating that a certain condition or attribute has been detected when it has not.

Control Charts

Statistical tools used in quality control to monitor a process and identify when it is out of control, through the plotting of data points in time order.

Gradual Shift

A slow and steady change or movement in position, opinion, or condition over time.

Piston Rings

Circular components that fit into grooves on the outer diameter of a piston in an engine to seal the combustion chamber, control oil consumption, and manage heat transfer.

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