Significant deficiency

A significant deficiency is a single weakness or a combination of weaknesses in the internal controls associated with financial reporting, that is less severe than a material control weakness and yet is sufficient to merit the scrutiny of those responsible for administering an entity's financial reporting. The presence of such a deficiency does not mean that a material misstatement has occurred, but it indicates the possibility of such an occurrence in the future.

Related Courses

Accounting Controls Guidebook