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pantera1 [17]
4 years ago
10

A ________ is a material deficiency, or combination of significant deficiencies, that results in more than a remote likelihood t

hat a material misstatement in the annual or interim financial statements will not be prevented or detected.
Social Studies
2 answers:
Marat540 [252]4 years ago
5 0

Answer:

The answer is a Material Weakness.

Explanation:

A material weakness occurs when one or more of the internal controls established by a company like activities, rules, and processes to avoid irregularities related to financial statements, as well as to improve all aspects concerning operations' company are ineffective.

If there is a deficiency in internal control related to a material weakness, it could provoke something called a material misstatement concerning a company's financial statements. Thus, the company's financial data could be considered unreliable.      

irina1246 [14]4 years ago
5 0

Answer:

Material weakness

Explanation:

A material weakness results from control deficiency, or a combination of more than one  control deficiencies in a company's internal controls. It could result in material misstatements of the interim or annual financial statements of a company. In other words, material weakness occurs when a company's internal control during the collation of financial statement is discovered to be ineffective.

Material weakness can affect a company's reputation and also result to higher fees when auditing.

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