We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Business Deficiency Management

Categories Business, Communication, Management, Society

Essay, Pages 2 (299 words)



Essay, Pages 2 (299 words)

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing, or (b) an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met.

Don't waste time.

Get a verified writer to help you with Business Deficiency Management

HIRE verified writer

$35.80 for a 2-page paper

A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively. * Material weakness.

A deficiency or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. * Significant deficiency. A deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance.

AU-C §265 also claims that the auditor should communicate to management at an appropriate level of responsibility, on a timely basis. in writing, significant deficiencies and material weaknesses that the auditor has communicated or intends to communicate to those charged with governance, unless it would be inappropriate to communicate directly to management in the circumstances. * in writing or orally, other deficiencies in internal control identified during the audit that have not been communicated to management by other parties and that, in the auditor’s professional judgment, are of sufficient importance to merit management’s attention.

Top writers

Professor P

shield Verified writer

starstarstarstarstar 4.9 (345)

Prof. Clara

shield Verified writer

starstarstarstarstar 5 (345)


shield Verified writer

starstarstarstarstar 4.9 (247)

HIRE verified writer

If other deficiencies in internal control are communicated orally, the auditor should document the communication.

Cite this essay

Business Deficiency Management. (2018, Sep 07). Retrieved from https://studymoose.com/business-deficiency-management-essay

Stay safe, stay original

It’s fast
It’s safe
check your essay for plagiarism

Not Finding What You Need?

Search for essay samples now


Your Answer is very helpful for Us
Thank you a lot!