Misstatements and internal control deficiencies

Area 3: Performing Further Procedures and Obtaining Evidence (30-40%)

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Topics

  • Evaluating identified misstatements
  • Communication of deficiencies

Lessons

Study Frameworks

Control Deficiency Classification

Does a deficiency (or combination) exist in internal control?
Yes
Is there a reasonable possibility that a material misstatement would not be prevented or detected on a timely basis?
Yes
Material weakness — must communicate to management and those charged with governance
No
Is the deficiency important enough to merit attention by those charged with governance?
Yes
Significant deficiency — communicate in writing to those charged with governance
No
Deficiency — may communicate to management
No
No control deficiency to report
Practice These Topics(64 questions)