A Material Weakness Is

question 49

Multiple Choice

A material weakness is:

• A)a control deficiency or a combination of control deficiencies that adversely affects the company's ability to initiate,authorize,record,process,or report internal financial data reliably in accordance with an applicable financial reporting framework
• B)a control deficiency or a combination of control deficiencies that adversely affects the company's ability to initiate,authorize,record,process,or report external financial data reliably in accordance with an applicable financial reporting framework
• C)a significant deficiency or combination of significant deficiencies that results in a remote likelihood that a material misstatement in the financial statements would not be prevented or detected
• D)a significant deficiency or combination of significant deficiencies that result in more than a remote likelihood that a material misstatement in the financial statements would not be prevented or detected

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Definitions:

Sample Size

The quantity of subjects or units selected from a population to participate in a research study, determining the study's ability to detect a significant effect.

T Procedure

A statistical method typically used to test hypotheses when the sample size is small and the population variance is unknown, involving the t-distribution.

Approximately Normal

Describes a distribution that closely follows a normal distribution, often used as an assumption in statistical tests.

P-value

The probability of obtaining test results at least as extreme as the ones observed during the study, assuming that the null hypothesis is correct.