A ________ exists if one or more control deficiencies exist that are less severe than a material weakness, but are important enough to merit attention by those responsible for oversight of the company's financial reporting.
A) potential misstatement
B) significant weakness
C) significant deficiency
D) fraud symptom

Question

Quizplus · Accepted Answer

A significant deficiency is a control deficiency that is less severe than a material weakness but is still important enough to merit attention and correction by those responsible for oversight of the company's financial reporting. A potential misstatement refers to the risk of financial statements containing errors, but does not necessarily indicate a control deficiency. A significant weakness is not a commonly used term in the context of internal controls over financial reporting. A fraud symptom is not a commonly used term in the context of internal controls over financial reporting.

A ________ Exists If One or More Control Deficiencies Exist