Explore BrainMass

internal control deficiency, significant deficiency

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

What is an:

(a) internal control deficiency,
(b) significant deficiency, and
(c) material weakness.

© BrainMass Inc. brainmass.com March 21, 2019, 10:13 pm ad1c9bdddf

Solution Preview

In the study of the internal controls during an integrated audit, where controls must be assessed and tested as part of the audit, the audit must determined the effectiveness of management's internal controls over financial reporting.

An internal control deficiency exists when the control does not make it possible for an employee or management to detect or prevent transactions and balances from having material misstatements. Deficiencies can be of two types:

(1) Deficient design. These are deficiencies because the control does not exist at all or a control that is planned but is not ...

Solution Summary

Your tutorial is 343 words and contrasts significant deficiencies from material weaknesses and how the auditor's duties given their judgment about whether deficiencies are more serious or less serious. The two kinds of internal control deficiencies are also explained.