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Lucas Edgerton is a staff auditor at Jansen, Smith, and Bryan, LLP. During the audit of...

Lucas Edgerton is a staff auditor at Jansen, Smith, and Bryan, LLP. During the audit of a regional pizza franchise, Lucas discovers several deficiencies in internal controls. Explain how Lucas should determine whether or not these deficiencies are significant and/or material weaknesses.

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A material weakness is a deficiency or a combination of deficiencies in the internal controls of an organization where in any material misstatement will not be detected. The auditor has to determine the severity of identified control deficiencies to evaluate if there exist any material weakness or a significant deficiencies. A significant deficiency can be a control deficiency or a combination of control deficiencies such that any significant misstatement will not be prevented or detected.

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