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True or false: A material weakness must be communicated in writing to those charged with governance...

True or false: A material weakness must be communicated in writing to those charged with governance but a significant deficiency does not.

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Answer #1

FALSE

Significant deficiencies or material weaknesses are required to be communicated in writing to management and those charged with governance.

A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness but merits attention by those charged with governance.

A material weakness is a deficiency, or combination of deficiencies, in internal control that results in a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility means that the probability of the event is more than remote.

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