Final answer:
The correct answer to the question regarding material weakness is c. Greater than a significant deficiency. Material weakness is a serious issue in internal control that may lead to material misstatements which are not tolerable and exceed inconsequential amounts.
Step-by-step explanation:
A material weakness is a deficiency in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's financial statements will not be prevented or detected on a timely basis. In the context of the question, the correct answer is option c. Greater than a significant deficiency. This is because a material weakness is more serious than a significant deficiency, which may not necessarily have a material impact on financial statements but still warrants attention.
For clarification, an inconsequential misstatement is one that is small enough that it would not likely influence the decision of a reasonable person using the financial statements. Conversely, tolerable misstatements would be larger than inconsequential but not material and would still be acceptable within the bounds of financial reporting. Significant deficiencies are less severe than material weaknesses but more severe than inconsequential issues in financial controls.