Several significant deficiencies in internal controls may constitute a material weakness.

Question

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According to the standards of the Public Company Accounting Oversight Board (PCAOB), several significant deficiencies in internal controls may constitute a material weakness. Material weaknesses are defined as "a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis."

Several Significant Deficiencies in Internal Controls May Constitute a Material