Significant deficiency in internal control

A significant deficiency in internal control is a deficiency or combination of deficiencies that, in the auditor’s professional judgement, is of sufficient importance to merit the attention of those charged with governance. The auditor communicates significant deficiencies in writing as required. The auditor considers the likelihood and potential magnitude of misstatement and the circumstances of the deficiency. Communication should describe the deficiency and explain its potential effects; it need not mean a material misstatement has already occurred.