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3-Internal Control-Concepts and Standards > Internal Control-required communications > Flashcards

Flashcards in Internal Control-required communications Deck (7)
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1

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.

2

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.

3

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

4

identified significant deficiency and material weakness must be

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

5

lesser matters

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

6

timing of communication

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

7

restricted distribution

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