Which of the Following Is Least Likely to Represent a Material

question 7

Multiple Choice

Which of the following is least likely to represent a material weakness in internal control for Flynt Corporation?

• A)Flynt Corporation's computer systems were not working properly for two days; consequently, employees needed to do all reconciliations manually.
• B)Flynt Corporation's CFO was arrested last year for embezzling money from the entity.
• C)For the current year, the auditor found a material misstatement in Flynt's sales recognition that was undetected by the internal controls.
• D)Flynt's audit committee is deemed to be ineffective.

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Definitions:

Nonbinding Verdict

A trial result which does not have the legal force to compel the parties to accept its terms, often used in mock trials or as advisory opinions.

Neutral Third Party

An unbiased individual or entity brought into a dispute to help negotiate or decide on a resolution without any vested interest in the outcome.

Early Neutral Case Evaluation

A process in which both parties to a dispute present their case to a neutral evaluator early in litigation to obtain an unbiased assessment.

Strengths and Weaknesses

The positive attributes and areas for improvement that are inherent to an individual, organization, or object.