Lesson: Communication of Deficiencies in Internal Control

In this lesson, Nick Palazzolo discusses the communication of deficiencies in internal controls for both non-issuers and issuers during a financial statement audit. He emphasizes the importance of understanding the severity of control deficiencies, significant deficiencies, and material weaknesses, and explains how they should be communicated to management and those charged with governance. The lesson also highlights the necessary timelines for communication and discusses the importance of addressing deficiencies before issuing the audit report. Additionally, Nick touches on audit committee involvement, the roles of management and governance, and the significance of documenting these communications in writing.