Question

During the interim testing of ICFR, the auditor discovers a material deficiency. After further assessment it is determined that the likelihood that a misstatement will occur from the deficiency is remote. This deficiency qualifies as a:

Control deficiency

Significant deficiency

None of the above

Material weakness

Answer 1

During the interim testing of ICFR, the auditor discovers a material deficiency. After further assessment it is determined that the likelihood that a misstatement will occur from the deficiency is remote. This deficiency is not control deficiency, not significant deficiency nor material weakness.

If such deficiency is less severe, but more than remote, then it would have been significant deficiency. If such deficiency could not have been detected or controlled, then it was control deficiency. If such deficiency could not be prevented or detected on a timely basis, then it is material weakness, which is also more than remote.

Therefore, the correct answer is option 3rd, NONE OF THE ABOVE.