A Situation in Which the Design or Operation of a Control

question 55

Multiple Choice

A situation in which the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent or detect material misstatements on a timely basis is referred to as a:

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

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Definitions:

Sales Mix

The proportion of different products or services that make up the total sales of a company.

Limited Production

A production strategy where a restricted quantity of a product is made, often to maintain exclusivity or because of constraints.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus any depreciation or amortization.

Salvage Value

The estimated residual value of an asset at the end of its useful life, expected to be recovered upon disposal.