A significant deficiency in internal control is one which merits the attention of those charged with governance.

Required:
State THREE (3) requirements of an Auditor when there are deficiencies in internal control of a client.

Requirements of an auditor when deficiencies in internal control are identified:

  • The auditor must determine whether the identified deficiencies are significant individually or in combination with others.
  • The auditor must communicate in writing significant deficiencies to those charged with governance on a timely basis.
  • The auditor must communicate to management any other deficiencies that have not been communicated by other parties, if deemed important enough to warrant attention.