Section Definitions - ASA 265 - Communicating Deficiencies in Internal Control to Those Charged with Governance and Management - October 2009 - Definitions | Zoe
ASA 265 - Communicating Deficiencies in Internal Control to Those Charged with Governance and Management - October 2009
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For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Deficiency in internal control means:
A control is designed, implemented or operated in such a way that it is unable to prevent, or detect and correct, misstatements in the financial report on a timely basis; or
A control necessary to prevent, or detect and correct, misstatements in the financial report on a timely basis is missing.
Significant deficiency in internal control means a deficiency or combination of deficiencies in internal control that, in the auditor’s professional judgement, is of sufficient importance to merit the attention of those charged with governance. (Ref: Para. A5)