pexels photo 1720186

Internal control significant deficiency – meaning

According to ISA 265 significant deficiency in the internal control is the deficiency of internal controls discovered during the test of internal control which in auditor’s professional judgement need to be communicated to those charged with governance.



The decision to decide whether the deficiency is significant or not rests with the auditor. After the auditor has communicated the deficiency to those charged with governance he expects the management to work on them since they may lead to misstatement in the financial statements.

1 thought on “Internal control significant deficiency – meaning”

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

Leave a Comment

Your email address will not be published. Required fields are marked *

%d bloggers like this: