A material misstatement in the financial statements,including those requiring restatements strongly implies a material weakness in which of the following?
A)income statement.
B)balance sheet.
C)internal control.
D)cash flow statements.

Question

Quizplus · Accepted Answer

A material misstatement in the financial statements implies that there is a material weakness in the internal control of the company, as adequate control procedures were not in place to prevent or detect the misstatement. Therefore, the best choice is C, internal control.

A Material Misstatement in the Financial Statements,including Those Requiring Restatements