Which of the following is least likely to represent a material weakness in internal control for Flynt Corporation?
A) Flynt Corporation's computer systems were not working properly for two days; consequently, employees needed to do all reconciliations manually.
B) Flynt Corporation's CFO was arrested last year for embezzling money from the company.
C) For the current year, the auditor found a material misstatement in Flynt's sales recognition that was undetected by the internal controls.
D) Flynt's audit committee is deemed to be ineffective.

Question

Quizplus · Accepted Answer

A temporary issue with computer systems requiring manual reconciliations for two days is less likely to represent a material weakness in internal control compared to issues involving fraud, material misstatements, or an ineffective audit committee.

Which of the Following Is Least Likely to Represent a Material