Material Weakness vs. Significant Deficiency
21 هزار بار بازدید -
5 سال پیش
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When an auditor identifies a
When an auditor identifies a deficiency in a client's internal controls, the auditor should assess the magnitude and likelihood of a material misstatement resulting from the internal control's failure. If the likelihood of a material misstatement is remote, the auditor need not do anything. If the likelihood of a material misstatement is reasonably possible or probable, however, the auditor must determine the potential magnitude of such a material misstatement.
If the magnitude would be material, this constitutes a material weakness. The auditor must report this in the financial statements, to the audit committee, and to the company's management.
If the magnitude is not material, but significant, this constitutes a significant deficiency. The auditor must report this to the audit committee and the company's management.
If the magnitude is neither material nor significant, this is simply called a control deficiency. The auditor must report it to the company's management.—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
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If the magnitude would be material, this constitutes a material weakness. The auditor must report this in the financial statements, to the audit committee, and to the company's management.
If the magnitude is not material, but significant, this constitutes a significant deficiency. The auditor must report this to the audit committee and the company's management.
If the magnitude is neither material nor significant, this is simply called a control deficiency. The auditor must report it to the company's management.—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*Patreon: prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast...
* Spotify: https://open.spotify.com/show/4WaNTqV...
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
* TikTok: prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: Facebook: Edspira
* Instagram: Instagram: edspiradotcom
* LinkedIn: LinkedIn: edspira
—
CONNECT WITH MICHAEL
* Twitter: Twitter: Prof_McLaughlin
* LinkedIn: LinkedIn: prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com
5 سال پیش
در تاریخ 1398/06/26 منتشر شده
است.
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