What is a Material Weakness?

Q: What is the effect of a Significant Deficiency? What is it?

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: What is meant by a dilutive security?

A: Dilutive security is a type of investment security that helps the company increase its equity…

Q: Explain the types of risk?

A: Introduction: There is a risk involved in any company decision, and in personal life decisions. In…

Q: How is EDI more than technology? What unique control problems may it pose?

A:

Q: WHAT DOES BREAK-EVEN ANALYSIS EXPLAIN?

A: Break Even - Break even is the level of sales wherein the total cost = Total revenue, in simple…

Q: What are the key limitations of an internal control system?

A: Internal Control: A mechanism to maintain the goals of an entity in terms of organizational…

Q: What is the advantages and disadvantages of turnkey systems?

A: Introduction; A turnkey system is when the company develops, builds, and tests a manufacturing…

Q: Why is poor-quality systems documentation a prevalent problem?

A: Computer Based Information System: Computer based information system refers to the record of data…

Q: What is Operating Leverage and is it good or bad?

A: It can be characterized as how much a firm brings about a mix of fixed and variable expenses. In…

Q: What is the purpose of a limit check?

A: Internal controls: Internal controls are the control established within an organization to check…

Q: What is the difference between best efforts and underwriting?

A: The term best efforts allude to a specialist organization's consent to take the necessary steps to…

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: What are some disadvantages of the APT?

A: APT is the abbreviation used for the arbitrage pricing theory. A theory or a model for asset pricing…

Q: What are the disadvantages of a Double Entry System?

A: Double entry system is a method of keeping records of transaction in the books of accounts, where…

Q: What is the process of developing a strength/weakness balance sheet?

A: A balance sheet is a financial statement which shows the assets, liabilities, and shareholder…

Q: What is Normal spoilage?

A: Definition:   Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage…

Q: What are the Differences in Maturities?

A: Maturities in the context of the bond mean that bonds are issued for a specific period of time. It…

Q: What are the advantages and disadvantages of using MUS? Under what conditions is it best used?

A:

Q: What is an Anti-dilutive Security

A: Anti-dilutive securities are those securities that a company has issued and which can get converted…

Q: Does the use of ghost-ticking would violate what pillar of character?

A: Making a mark that suggests you confirmed them when you didn't would be called "ghost ticking."…

Q: What do "threat," "vulnerability," and "risk" really mean?

A: Threat : A declaration of purpose to cause someone pain, harm, damage, or other hostile action as…

Q: What is collusion?

A: Auditing: Auditing refers to the process of verifying the correctness and fair presentation of…

Q: What is required if a Material Weakness is identified?

A:

Q: What are the limitations on Control Activities?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What are (a) an internal control deficiency, (b) a significant deficiency, and (c) a material…

A:

Q: What is the major disadvantage of the high-low method?

A: High-low method: High-low method is a method of calculating the variable cost and the fixed cost of…

Q: What is the Allowable Risk of Over-reliance?

A: Auditor has to test the account balances and classes of transactions and has to do both control…

Q: Identify the weakness and the risk relating to the above.

A: Answer: The weakness is the shortcoming in any process and risk is the factor that result due to…

Q: internal control strength or weakness

A: Weakness defines the control needs to improved in that area to minimise the risk. Strength defines…

Q: What is the iceberg effect? How can CASE tools help to minimize this phenomenon?

A: The Iceberg Principle or Iceberg Theory is a hypothesis that proposes that we can't see or recognize…

Q: Why is sanctions compliance important?

A: Financial institutions are the institutions or organizations which act as the intermediaries of the…

Q: What are representative strengths of NPO?

A: Non Profit Organisations (NPO) are expected to be driven by a need to fulfill a social purpose…

Q: What is a proxy fight?

A: Introduction: A proxy fight is an unfriendly competition for the control throughout an institution.…

Q: what is the break-even point and margin of safety ?

A: Break-even point In accounting language Break-even point means the total turnover of the company is…

Q: What is anchoring bias?

A: Anchoring bias: Anchoring bias happens if persons depends on moreover on pre-existing data or the…

Q: What are some limitations of internal control?

A: The below-mentioned points indicate that every system has its frailties and despite such…

Q: What is conflict of interest?

A: Conflict of interest: Conflict of interest occurs when a person derives personal benefits by…

Q: What are some limitations of internal controls?

A:

Liquidity Risk Exposure

Answer: c