Which of the Following Would Probably Not Be Considered an Indication

question 68

Multiple Choice

Which of the following would probably not be considered an indication of a material weakness?

• A) Evidence of a material misstatement.
• B) Ineffective oversight by the audit committee.
• C) Immaterial fraud committed by senior management.
• D) Overproduction by the manufacturing plant.

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Definitions:

Schedule K-1

A tax document used to report the income, losses, and dividends of a partnership or S corporation's shareholders or partners.

Short-term Capital Gains

Profits from the sale of an asset held for one year or less, taxed at ordinary income tax rates.

Tax Treatment

Refers to the method or rules applied in determining how an item or situation is taxed, affecting the financial outcome.

Rental Income

Income received from renting out property, such as houses or apartments, which is subject to tax.