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Internal control deficiency – meaning

According to ISA 265 deficiency in internal control exist when:

  • A control is designed, implemented or operated in such a way that it is unable to prevent, detect and correct, misstatement in the financial statement on timely basis; or
  • A control necessary to prevent, detect and correct, misstatement in the financial statement on timely basis is missing.

In other words, deficiency in the internal control occur when internal control put in place by those charged with governance to prevent, detect and correct, misstatement in financial statement on timely basis i either not working or is missing



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  1. Pingback: 8 matters to consider in determining if the deficiency in internal control is significant. - ACCOUNTING CLASS

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