A Material Weakness Will Always Exist When a Company Has

question 45

Multiple Choice

A material weakness will always exist when a company has:

• A) a decentralized structure and authority is shared in a system of matrix management.
• B) an audit committee that provides ineffective oversight of financial reporting and ICFR.
• C) a corporate culture with a strong emphasis on achieving profitability.
• D) inexperienced workers serving in demanding positions.

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Definitions:

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Bourgeoisie

The class of modern capitalists who own the means of production and employ labor for wage-earning purposes, often contrasted with the working class, or proletariat.

Proletariat

The class of workers who do not own the means of production and must sell their labor to survive, often discussed in Marxist theory.

Means Of Production

The facilities and resources for producing goods, often discussed in economics and Marxist theory as owned by different classes in society.