A Material Weakness in the Design of the Operation of Controls

question 49

Multiple Choice

A material weakness in the design of the operation of controls discovered in an audit of internal controls results in:

• A)A qualified management letter.
• B)An adverse report on internal controls.
• C)The firing of the auditors.
• D)Adjusting audit journal entries.

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Definitions:

Resources

Assets, materials, or inputs used by an individual or organization to achieve objectives or produce goods and services.

Best Interest

A principle that emphasizes acting for the greatest benefit or advantage of all parties involved.

Benefit

An advantage, improvement, or gain that is obtained from an action, decision, or situation.

Statement Of Action

A document or declaration outlining specific steps or measures that need to be taken in order to achieve a certain goal or objective.