Question

How must significant deficiencies and material weaknesses be communicated to those charged with governance?

1) Either oral or written communication is acceptable.
2) Oral communication is required.
3) Written communication is required.

Answer 1

Significant deficiencies and material weaknesses must be 'written' communicated to those charged with governance according to International Standards on Auditing (ISA).

Step-by-step explanation:

In corporate governance, significant deficiencies and material weaknesses are internal control deficiencies that need to be communicated to those charged with governance.

According to the International Standards on Auditing (ISA), significant deficiencies and material weaknesses should be written communicated to those charged with governance. This is to ensure that there is a clear record of the deficiencies and that all parties have a documented understanding.

Oral communication is not sufficient as it can be easily forgotten or misunderstood, and there may be a need for an audit trail to demonstrate effective communication of these deficiencies.