What role does materiality play in classifying the type of control deficiencies

Expert Solution

The concept of materiality means that any material misstatement that may influence the decision making of the users of the financial statements. Materiality is important in determining the audit procedures and the extent to which audit tests have to be carries. A control deficiency usually is a state when the management or the employees of the organization are not able to effectively perform their duties and are not able to detect/ prevent material misstatements. The types of control deficiencies include significant deficiencies and material weakness. If the risk of material misstatement is high then it is classified as a significant deficiencies. A material weakness is a deficiency that will most likely not be detected but the effect will result in serious error or control deficiency.

ekkarill92 answered 2 years ago

In what type of management does time play a minor role in?

What role does temperature and confining pressure play in the type of deformation?

what is an antigen-presenting cell and what role does this type of cell play in an...

what is an antigen-presenting cell and what role does this type of cell play in an immune response?

Does social media play a role in advertising? If so, what role does it play?

what role does consumption play in shaping your sense of self? what role does it play...

what role does consumption play in shaping your sense of self? what role does it play in our society?

Q1. What role does the accounting department play (or what role should it play) in the...

Q1. What role does the accounting department play (or what role should it play) in the budgeting process? In the end, who is ultimately responsible for the budget, anyway? Instead of the president of the company, would it be more effective if the budgeting committee as a whole was responsible for the budget? Q2. Who should represent the various departments in the budget committee? What are the roles of these individuals?

What role does phosphorus play?

What role does antibody play in Trypanosoma brucei infections? What role does VSG play in T....

What role does antibody play in Trypanosoma brucei infections? What role does VSG play in T. brucei infections? Using your knowledge of antibodies explain how the trypanosome survive within the host to ensure transmission to new hosts? How does the parasite evade the host immune system?

What role does intuition play in decision making? What role does quantitative data play in decision...

What role does intuition play in decision making? What role does quantitative data play in decision making? Identify a decision situation in which you used both intuition and data for your analysis of the situation

What role does antibody play in Trypanosoma bruceiinfections? What role does VSG play in T. bruceiinfections?

Question