All of the following are significant deficiencies except:
A)inadequate design of internal control over a significant account or process.
B)management override of controls.
C)inadequate provisions for safeguarding assets.
D)inventory is highly subject to obsolescence.

Question

Quizplus · Accepted Answer

While inventory being highly subject to obsolescence is a significant risk and concern, it is not considered a significant deficiency in internal control. A significant deficiency refers to a weakness in internal control that poses a risk of material misstatement in the financial statements. Inadequate design of internal control, management override, and inadequate safeguarding of assets are examples of significant deficiencies.

All of the Following Are Significant Deficiencies Except