When One Material Weakness Is Present at the End of the Year

question 108

Multiple Choice

When one material weakness is present at the end of the year, management of a public company must conclude that internal control over financial reporting is

• A) insufficient.
• B) inadequate.
• C) ineffective.
• D) inefficient.

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Definitions:

Consideration

An essential element in contract law that involves something of value exchanged between parties, which can include money, goods, services, or a promise to act or not act.

Statutes of Limitation

Laws that set the maximum time after an event within which legal proceedings may be initiated.

Reasonable Price

A price that is fair, considering the circumstances of the sale and the market conditions, often used in legal and commercial contexts to determine the fairness of transactions.

Stolen Piano

A piano that has been unlawfully taken from its rightful owner.