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A deficiency in IC is significant if
Subjectivity and complexity of determining estimated amount
FS exposed to deficiencies.
Can you explain with an example what these means
No idea where you got this and I have no idea what it means.
ISA 265 has the following definition:
Significant deficiency in internal control – A deficiency or combination of deficiencies in internal control that, in the auditor’s professional judgment, is of sufficient importance to merit the attention of those charged with governance.
https://www.ifac.org/system/files/downloads/a015-2010-iaasb-handbook-isa-265.pdf
I read it here. Factors that determine whether a deficiency is significant or not
Its mentioned in the link you provided as well. Page 241 A6.
Can you give me an example for those two points
Note: this article is for F8 and P7, so be careful not to spend time on too much detail. The list of points is for consideration only, and that’s almost certainly more of a P7 point.
“the subjectivity and complexity of determining estimated amounts, such as fair value accounting estimates”: if an amount is complex to calculate then more care, controls and procedures are needed to try to make sure that the estimate is OK.
“the financial statement amounts exposed to the deficiencies”: if no control over the issue of paper clips is unlikely to make the deficiency significant.
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