Lesson: Determining Significant Deficiencies

In this lesson, the focus is on determining significant deficiencies during an audit. It explores the various levels of deficiencies and their importance in the context of an audit. The lesson emphasizes the need to communicate significant deficiencies to management, and the different factors an auditor must consider when evaluating the severity and impact of multiple deficiencies on financial statements. Additionally, it highlights the importance of understanding the various components of internal control over financial reporting (ICFR) and how deficiencies can affect different account balances and transactions in order to classify them as significant deficiencies.