Which of the Following Is a Weakness in Internal Control

question 3

Multiple Choice

Which of the following is a weakness in internal control that allows a reasonable possibility that a significant (but less than material) misstatement may occur and not be detected?

• A)Control deficiency.
• B)Material weakness.
• C)Reportable material item.
• D)Significant deficiency.

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Definitions:

Price Risk

The risk of a change in the market price of securities affecting an investor's portfolio value.

Bushels

A unit of volume that is used in the United States for measuring agricultural commodities, such as grains.

Payoff Profile

The graphical representation of the potential financial outcomes of an investment or trade at various prices of the underlying asset.

Financial Asset

Any asset that is cash, an equity instrument of another entity, a contractual right to receive cash or another financial asset, or a contractual right to exchange financial instruments under favorable conditions.