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With regards to reporting, what is the difference between a deficiency and a material weakness?

April 26, 2017Deficiency material regards weakness

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With regards to reporting, what is the difference between a deficiency and a material weakness?

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There are three levels of deficiencies with material weakness being the most serious. A control deficiency is typically reported to management. A significant deficiency is reported to management, the audit committee and external auditors. If material weaknesses are found during the assessment, management must disclose to the audit committee, external auditors and the SEC (via the 10-K report).