Question

Which of the following is least likely to represent a material weakness in internal control for Flynt Corporation?

A) Flynt Corporation's computer systems were not working properly for two days; consequently, employees needed to do all reconciliations manually.

B) Flynt Corporation's CFO was arrested last year for embezzling money from the entity.

C) For the current year, the auditor found a material misstatement in Flynt's sales recognition that was undetected by the internal controls.

D) Flynt's audit committee is deemed to be ineffective.

Answer 1

Option D) Flynt's audit committee is deemed to be ineffective is least likely to represent a material weakness in internal control for Flynt Corporation.

Step-by-step explanation:

Based on the options provided, the least likely to represent a material weakness in internal control for Flynt Corporation would be option D) Flynt's audit committee is deemed to be ineffective.

Options A, B, and C all describe situations that could potentially indicate material weaknesses in internal control. Option A suggests that the computer systems were not working properly, which could lead to errors and inconsistencies in financial reporting. Option B indicates that the CFO was arrested for embezzlement, suggesting a lack of oversight and potential for fraud. Option C mentions a material misstatement in sales recognition that went undetected by the internal controls, which implies weaknesses in financial reporting processes.

On the other hand, option D focuses on the effectiveness of Flynt's audit committee. While an ineffective audit committee is not ideal, it may not directly represent a material weakness in internal control as it pertains to the financial reporting processes and systems.