The Difference Between a Significant Deficiency and a Material Weakness

question 76

Multiple Choice

The difference between a significant deficiency and a material weakness is:

• A) one of dollars amounts; the material weakness has a greater dollar impact than a significant deficiency.
• B) a material weakness has a reasonable possibility that a material misstatement will not be detected; a significant deficiency is less severe.
• C) a material weakness has a reasonable probability that a material misstatement will not be detected; a significant deficiency is less severe.
• D) All of the above.

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Definitions:

Market Power

The ability of a producer to raise prices.

Externalities

External benefits and external costs.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and where use by one individual does not reduce availability to others.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.