A material weakness is:
A)a control deficiency or a combination of control deficiencies that adversely affects the company's ability to initiate,authorize,record,process,or report internal financial data reliably in accordance with an applicable financial reporting framework
B)a control deficiency or a combination of control deficiencies that adversely affects the company's ability to initiate,authorize,record,process,or report external financial data reliably in accordance with an applicable financial reporting framework
C)a significant deficiency or combination of significant deficiencies that results in a remote likelihood that a material misstatement in the financial statements would not be prevented or detected
D)a significant deficiency or combination of significant deficiencies that result in more than a remote likelihood that a material misstatement in the financial statements would not be prevented or detected

Question

Quizplus · Accepted Answer

A material weakness is a significant deficiency or combination of significant deficiencies in internal control over financial reporting that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. Option A and B describe control deficiencies, while option C describes a significant deficiency, not a material weakness.

A Material Weakness Is