Internal controls over financial reporting will not be considered effective if
A)the internal controls are considered non effective
B)one or more material weaknesses exist in the company
C)there is a significant deficiency in the company's internal control
D)there are numerous control deficiencies in internal control

Question

Quizplus · Accepted Answer

A material weakness is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting that results in 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. Thus, if one or more material weaknesses exist, internal controls over financial reporting will not be considered effective.

Internal Controls Over Financial Reporting Will Not Be Considered Effective