Which of the following would probably not be considered an indication of a material weakness?
A) Evidence of a material misstatement.
B) Ineffective oversight by the audit committee.
C) Immaterial fraud committed by senior management.
D) Overproduction by the manufacturing plant.

Question

Quizplus · Accepted Answer

Overproduction by the manufacturing plant is not related to the financial reporting process, so it would not be considered an indication of a material weakness. A material weakness relates to a weakness in internal controls over financial reporting that could result in a material misstatement in the financial statements. Options A, B, and C all relate to potential weaknesses in internal controls over financial reporting.

Which of the Following Would Probably Not Be Considered an Indication