Which of the Following Would Be a Control Deficiency

question 10

Multiple Choice

Which of the following would be a control deficiency?

• A) The person assigned to implement the control does not understand how to do so.
• B) The control does not allow management to detect or prevent a material misstatement.
• C) The control does not operate as intended.
• D) All of the above.

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Definitions:

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Reportable Segment

Part of a company that can be clearly distinguished operationally and financially from other parts of the company, requiring separate reporting under certain financial reporting frameworks.

Financial Report

A formal record containing financial information of an entity, including statements of financial position, performance, changes in equity, and cash flow, for a specific period.

All Other Segments

In financial reporting, this term refers to the aggregation of operating segments that are not individually reportable due to their size or significance.