Audit-techniek & assurance
Material Weakness
A material weakness is a deficiency or combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement will not be prevented or detected on a timely basis. The external auditor must report material weaknesses in writing to management and the audit committee, and under PCAOB AS 2201 they lead to an adverse opinion by the external auditor on internal control over financial reporting (ICFR).
Source: PCAOB AS 2201; COSO Internal Control: Integrated Framework (2013)
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