Which of the Following Is a Strong Indicator That a Material

question 28

Multiple Choice

Which of the following is a strong indicator that a material weakness in internal control exists?

• A)Restatement of previously issued financial statements to reflect a correction.
• B)Inadequate controls over non-routine transactions.
• C)Inadequate controls over the period-end financial reporting process.
• D)Weaknesses in a control activity.

---

Definitions:

Computer Models

Simulations or algorithms created within a computer that represent or predict real-world systems, behaviors, or outcomes.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

New Product Planning

The process of defining the strategy and development roadmap for bringing a new product to market, including market research, design, and launch plans.

Long-range Time Horizon

A future time period in which long-term plans or forecasts are made, often extending several years into the future.