Internal Control-required communications Flashcards
significant deficiency
a deficiency (or combinations of deficiency) in internal control that is less severe than a material weakness, yet important enough to merit attention.
material weakness
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.
basic responsibility
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
identified significant deficiency and material weakness must be
communicated in writing to management or those charged with governance (even those things discussed verbally)
lesser matters
those that are not sig def, or mat weakness, may be communicated verbally or in writing. need to document verbal communications occurred
timing of communication
must be communicated no later than 60 days from the release date
restricted distribution
the auditor should restrict the distribution of any such report to specified users