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:

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization, including employees, customers, suppliers, and shareholders.

Community Involvement

Engagement of a company or its employees in activities and projects that benefit the society or environment in their local community.

Voluntary Labor

Work undertaken by choice or without financial compensation; often in the context of volunteerism or unpaid internships.

Management Practices

The actions, strategies, and methods employed by managers to achieve organizational objectives and improve performance.