internal control/report

Question 1

Significant Deficiency

Answer 1

A control deficiency, or combination of deficiencies, less severe than a material weakness but, in the auditor’s judgment, requiring the attention of those charged with governance.

Question 2

Significant Deficiency

Answer 2

A control deficiency, or combination of deficiencies, less severe than a material weakness but, in the auditor’s judgment, requiring the attention of those charged with governance.

Question 3

Material Weakness

Answer 3

A control deficiency, or combination of deficiencies, displaying at least a reasonable possibility that a material misstatement in financial statements will not be prevented or detected and corrected on a timely basis.

Question 4

Material Weakness

Answer 4

A control deficiency, or combination of deficiencies, displaying at least a reasonable possibility that a material misstatement in financial statements will not be prevented or detected and corrected on a timely basis.

Question 5

Audit of Internal Control Integrated with an Audit of Financial Statements

Answer 5

An examination required to be performed by auditors of issuers in accordance with the provisions of the Public Company Accounting Oversight Board (PCAOB) and designed to form an opinion on the effectiveness of internal control over financial reporting.

Question 6

Control Deficiency

Answer 6

When the design or operation of a control does not allow for the prevention or detection and correction of misstatements on a timely basis in the normal course of employee functions.