Internal Control-required communications Flashcards

1
Q

significant deficiency

A

a deficiency (or combinations of deficiency) in internal control that is less severe than a material weakness, yet important enough to merit attention.

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2
Q

material weakness

A

a deficiency (or combination of deficiencies) in internal control where there is a reasonable possibility that a material misstatement will not be prevented or detected and corrected on a timely basis.

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3
Q

basic responsibility

A

auditor must identify any significant deficiency or material weakness in the design or operation of internal control. need to determine if its a significant deficiency or a material weakness

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4
Q

identified significant deficiency and material weakness must be

A

communicated in writing to management or those charged with governance (even those things discussed verbally)

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5
Q

lesser matters

A

those that are not sig def, or mat weakness, may be communicated verbally or in writing. need to document verbal communications occurred

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6
Q

timing of communication

A

must be communicated no later than 60 days from the release date

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7
Q

restricted distribution

A

the auditor should restrict the distribution of any such report to specified users

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