If there is more than a reasonable possibility that a material misstatement could result from a significant deficiency found during the audit, then that deficiency is considered a material weakness in internal control.

Question

Quizplus · Accepted Answer

According to Auditing Standard No. 220, a significant deficiency in internal control is considered to be a material weakness if there is a reasonable possibility that a material misstatement could occur and not be prevented or detected in a timely manner. Therefore, if there is more than a reasonable possibility that a material misstatement could result from a significant deficiency, it is considered a material weakness in internal control.

If There Is More Than a Reasonable Possibility That a Material