Material Weakness vs. Significant Deficiency скачать в хорошем качестве

Material Weakness vs. Significant Deficiency

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. — 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 *  / 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   / prof_mclaughlin   — ACCESS INDEX OF VIDEOS https://www.edspira.com/index — CONNECT WITH EDSPIRA Facebook:   / edspira   Instagram:   / edspiradotcom   LinkedIn:   / edspira   — CONNECT WITH MICHAEL Twitter:   / prof_mclaughlin   LinkedIn:   / prof-michael-mclaughlin   — ABOUT EDSPIRA AND ITS CREATOR https://www.edspira.com/about/ https://michaelmclaughlin.com