A Significant Deficiency of Such Magnitude That Internal Control Components

question 54

Multiple Choice

A significant deficiency of such magnitude that internal control components do not reduce the risk of detection or prevention of material misstatement to an acceptably low level is called a(an)

• A)Material weakness and significant deficiency.
• B)System design deficiency.
• C)Unacceptable reportable condition.
• D)Audit alert item.

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Definitions:

Price Floor

A government-imposed minimum price charged for a product, above which market transactions may legally occur.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, naturally established in a free market.

Organizational Culture

The set of shared values, beliefs, and norms that influence the behavior and attitudes of individuals within an organization.

Inclusion And Respect

Concepts that involve valuing and leveraging differences among individuals in an organization or community to create a welcoming and equitable environment.