An Internal Control That Is Ineffective to the Extent That

question 48

Multiple Choice

An internal control that is ineffective to the extent that it might not prevent the financial statements from being materially misstated is referred to as a

• A) significant risk
• B) substantive error
• C) material weakness
• D) tolerable misstatement

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Definitions:

Automatically Processed

Information or tasks that are performed with little or no conscious effort, often due to repetition or familiarity.

Identification

The psychological process in which an individual assimilates an aspect, property, or attribute of another and is transformed, wholly or partially, by the model the other provides.

Automatically Processed

Information processed without conscious awareness, often quickly and efficiently.

Retracing Steps

A method of attempting to remember or find something by thinking or going back over the path or actions taken.