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A material weakness is a situation in which Multiple Choice
A) There is a remote likelihood that a material misstatement would be detected on a timely basis.
B) It is reasonably possible that an immaterial misstatement would not be detected on a timely basis.
C) It is reasonably possible that a material misstatement would not be detected on a timely basis.
D) It is probable that an immaterial financial statement misstatement would not be detected on a timely basis.

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NickMagnus

Answer:

C) It is reasonably possible that a material misstatement would not be detected on a timely basis.

Explanation:

"A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis."

Reference: Public Company Accounting Oversight Board. “Auditing Standard No. 5.” Auditing Standard No. 5, 2019

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