The internal control deficiencies identified in a financial statement audit may be reported in which of the following ways?
A)Significant deficiencies are reported in a management letter.
B)Material weaknesses are verbally reported to the audit committee.
C)Deficiencies that fail to reach the level of significant deficiencies or material weaknesses are reported in a management letter.
D)Significant deficiencies and material weaknesses may be verbally reported to both management and the audit committee.

Question

Quizplus · Accepted Answer

Deficiencies that do not reach the level of significant deficiencies or material weaknesses are typically reported in a management letter, which is a written communication to management.

The Internal Control Deficiencies Identified in a Financial Statement Audit