Question

A situation in which the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect material misstatements on a timely basis is referred to as a:A. Control deficiency.B. Material weakness.C. Reportable condition.D. Significant deficiency.

Answer 1

Answer: (A) Control deficiency

Explanation:

 The control deficiency is the type of situation in which the operation and the designing of the control are not allowing the management and an employee performing the various type of assigned function.

The control deficiency process occur when the person are involving with the authority in the transaction cycle.

This situation is usually occur in an larger type of an organization. The deficiency may be on the financial report that control internally.  

Therefore, Option (A) is correct.