Which of the following conditions most likely indicates the existence of significant deficiency in internal control over financial reporting?

Which of the following conditions most likely indicates the existence of significant deficiency in internal control over financial reporting?






a. The auditor obtains evidence of a material misstatement resulting from a missing control.
b. There is a deficiency, or combination of deficiencies, that is less severe than a material weakness, yet important enough to communicate to those charged with governance.
c. There is a reasonable possibility that a material misstatement in the financial statements could occur.
d. The auditor detects fraud committed by senior management.









Answer: B


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