A deficiency in internal controls is described as ________.
A)a combination of deficiencies in internal control which are as severe as material weaknesses
B)a deficiency in the design or operation of a single control that does not allow management to prevent and correct misstatements on a timely basis
C)a deficiency, or combination of deficiencies in internal control
D)a deficiency that has created a reasonable possibility of a material misstatement

Question

Quizplus · Accepted Answer

A deficiency in internal controls refers to a weakness in the design or operation of a single control that does not allow management to prevent and promptly detect or correct misstatements in the financial statements. It does not necessarily create a reasonable possibility of material misstatement on its own but could if combined with other deficiencies in the internal control system.

A Deficiency in Internal Controls Is Described as ________