MATERIAL WEAKNESS
\mətˈi͡əɹɪə͡l wˈiːknəs], \mətˈiəɹɪəl wˈiːknəs], \m_ə_t_ˈiə_ɹ_ɪ__əl w_ˈiː_k_n_ə_s]\
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If the internal checks and balances put in place by a firm are inadequate in discovering errors and preventing them from occurring again, failures that could occur could potentially lead to a misrepresentation of data. In accounting practices, this is an ineffective system. The services of other management officials may be needed to properly resolve the problem. A company runs the risk of damaging its future data regarding earnings and expenses if a material weakness is not properly addressed.
By Henry Campbell Black
Word of the day
Dopamine Acetyltransferase
- An enzyme that catalyzes the of groups from acetyl-CoA to arylamines. They have wide specificity for aromatic amines, particularly serotonin, and can also catalyze acetyl transfer between arylamines without CoA. EC 2.3.1.5.