[barelystayingsane]

Just needed some clarification on something… According to Becker, communication of both significant deficiencies and material weaknesses must be made by the report date for the examination of internal control for non-issuers, but only communication of material weaknesses (not significant deficiencies) must be made by the report date for the audit of internal control for issuers.

Is this correct? I feel like standards regarding issuers would be more “strict,” but this appears to be the opposite. I’ve run across incorrect information in other Becker books in the past, so I just wanted to make sure that this is correct.

Thanks!

[barelystayingsane]

bump

[Never_Give_Up1]

Material Weaknesses must be addressed at the report date in the audit report. The is because such a weakness will tend to also follow with a modified report, but not always. And Material weaknesses need to be disclosed to all stakeholders because it can affect a persons judgement about the company.

The report on internal controls is not due until 60-90 days after the report date. This report must include all significant deficiencies and material weaknesses and is addressed to management and the board of directors. They need to be made aware of all significant deficiencies and material weaknesses, but not control weaknesses.

FAR - 81
REG - 81
AUD - 82
BEC - 81

Ethics - Done
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License - Licensed CPA in Utah

[barelystayingsane]

@Never_Give_Up1 Thank you! You're so good at explaining this audit stuff. I understand now why PCAOB standards don't require the reporting of significant deficiencies by the report date (since, as you said, they wouldn't result in a modified opinion). Do you happen to know why SSAEs do require communication of significant deficiencies by the report date?

[Never_Give_Up1]

It is because when you are doing an attest engagement for non public entities. And because of that all the communication is done through the report, so significant deficiencies and MW should be disclosed then and only Control weakness needs to be just verbally communicated.

FAR - 81
REG - 81
AUD - 82
BEC - 81

Ethics - Done
State License Exam - Done

License - Licensed CPA in Utah

[Author]

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