In a recent questionnaire based survey conducted at our firm, we asked our employee involved in sarbanes oxley complaince projects "What according to them were the chief indicators of material weakness?". The
question was put before experts, senior & junior consultants, partners, directors accross all locations involved in SOX compliance. We got close to a thousand responses. I am listing down the results of the response & survey. Below, the main indicators of material weakness have been listed down without any specific order or priority.

1. Fraud by senior management.
2. Significant deficiencies which have not been remediated for a period of time.
3. Ineffective control environment.
4. Ineffective monitoring and oversight of the audit affairs by the audit committee.
5. Auditor identifying a material weakness which has not been initially identified by company's internal control.
6. Restatement of financial statements due to error or fraud.
7. Ineffective internal audit department.

Apart from the ones listed above, I would like the readers to add more indicators of material weakness in the comments.