Controls Deficiencies 1212

  • Hi all,
    I have a very fundamental question (Probably stupit question).
    What is the difference between control deficiency, significant deficiency and meterial weakness?
    I have gone thru the info in PCAOB. But could not satisfy myself.
    Every one’s help is solicited

  • The distinction between the deficiency ranking depends on the likelihood that the deficiency would lead to a material mis-statement of the financial statements. The analysis is discussed in a whitepaper issued by the 9 largest CPA firms and can be found at:
    Initially, a deficiency is analyzed without regard to any other deficiency. Once all deficiencies are analyzed, an auditor must group related deficiencies together to determine the significance of the risks of the deficiencies collectively.

  • Thank you very much John_Maleckar_CPA…
    your information is always helpful…
    I would like to share one thing with all you guys…I learned about Sox and IT Auditing in 4 days only…and I am now in a situation that I can answer some of the questions on this forum. I give this credit to all wonderful people who are actively involved with this forum. I spend 3 to 4 hours reading different issues here. Just because of you guys(specially Denis, kymike, ugogirl, and ofcource you), I am now all set to launch my career as a SOX consultant…
    hats off to all you gems
    ‘What ever happens, it always happens for the good’

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