Which of the following would probably not be considered an indication of a material weakness?a. Evidence of a material misstatement.b. Ineffective oversight by the audit committee.c. Immaterial fraud committed by senior management.d. Overproduction by the manufacturing plant.

Which of the following would probably not be considered an indication of a material weakness?a. Evidence of a material misstatement.b. Ineffective oversight by the audit committee.c. Immaterial fraud committed by senior management.d. Overproduction by the manufacturing plant.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 1MC: Which of the following would a fraudster perceive as a pressure? A. lack of management oversight B....

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Concept explainers

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.

Question

Which of the following would probably not be considered an indication of a material weakness?
a. Evidence of a material misstatement.
b. Ineffective oversight by the audit committee.
c. Immaterial fraud committed by senior management.
d. Overproduction by the manufacturing plant.

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