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
Significant Deficiency
A deficiency less severe than a material weakness but requiring management attention.
A significant deficiency sits between a simple deficiency and a material weakness. While it doesn't imply a reasonable probability of material misstatement, it is important enough to warrant the audit committee's attention and must be communicated in writing. In practice, the aggregation of multiple significant deficiencies can lead to reclassification as a material weakness, making systematic tracking essential. Internal and external auditors coordinate findings to avoid classification inconsistencies.
📌 Key points
- Less severe than a material weakness but more than a simple observation
- Mandatory written communication to the audit committee (no public disclosure required)
- Aggregation of significant deficiencies can create a material weakness
- Quarterly follow-up recommended until fully remediated
- Coordination between internal and external audit is essential for classification consistency
Related certifications
These certifications cover the concept of "Significant Deficiency" 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
ControlsControlsComplianceAuditCompliance
Material Weakness
A severe deficiency that could result in a material misstatement of financial statements.
Control Deficiency
A flaw in the design or operation of an internal control.
SOX Compliance
Requirements of the Sarbanes-Oxley Act to prevent financial statement fraud.
Audit Opinion
The auditor's formal conclusion on the adequacy of the control system examined.
PCAOB
Public Company Accounting Oversight Board — US regulator of public company auditors.
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