Which of the Following Statements Regarding Audit Findings Is

question 43

Multiple Choice

Which of the following statements regarding audit findings is ?

• A) A significant deficiency is a deficiency in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.
• B) A material weakness is a deficiency in internal control important enough to merit attention by those charged with governance.
• C) A deficiency exists when the design or operation of a control does not allow management or employees to prevent, or detect and correct misstatements on a timely basis.
• D) All of the above are true.

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Definitions:

Modeling

The process of representing a system or behavior through a mathematical, physical, or simulation model to study and predict outcomes.

Behavioral Theorists

Psychologists who study and analyze human behavior through observable behaviors and external stimuli, without focusing on internal thought processes.

Social Contagion Effect

The phenomenon in which attitudes, behaviors, or emotions spread through a group or society, mimicking the spread of pathogens.

Celebrity

A widely recognized or famous person, often associated with entertainment industries, who attracts considerable public fascination and media attention.