CISA· ISACA
Certified Information Systems Auditor (ISACA)
ISACA’s CISA targets IS audit. 5 domains, ITAF and COBIT, 2,300+ questions with AuditBot explanations.
Term DefinitionControls
Material Weakness
A severe deficiency that could result in a material misstatement of financial statements.
Material weakness is the most severe control deficiency classification under PCAOB AS2201. It implies a reasonable possibility that a material misstatement will not be detected or prevented. Its identification requires public disclosure in the annual report (Form 10-K) and urgent remediation. A material weakness can result from a single severe deficiency or a combination of significant deficiencies. Indicators include: financial statement restatements, significant fraud, widespread ITGC failures.
📌 Key points
- Defined by PCAOB AS2201: reasonable possibility a material error won't be detected
- Mandatory public disclosure in 10-K and 10-Q filings
- Can result from one severe deficiency or an aggregation of significant deficiencies
- Triggers urgent response: remediation plan with quarterly milestones
- Direct impact on company reputation and stock price
Related certifications
These certifications cover the concept of "Material Weakness" in depth.
CIA· IIA
Certified Internal Auditor (IIA, 3 Parts)
The IIA CIA certification covers this concept in Part 1 (framework, IPPF) and Part 2 (audit practice). 60+ lessons and 1,258 original questions.
🔗 Related concepts
ControlsControlsComplianceComplianceAudit
Control Deficiency
A flaw in the design or operation of an internal control.
Significant Deficiency
A deficiency less severe than a material weakness but requiring management attention.
SOX Compliance
Requirements of the Sarbanes-Oxley Act to prevent financial statement fraud.
PCAOB
Public Company Accounting Oversight Board — US regulator of public company auditors.
Audit Opinion
The auditor's formal conclusion on the adequacy of the control system examined.
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