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Flashcards in Internal Control-required communications Deck (7)
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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