Final answer:
Auditors must communicate significant deficiencies in internal controls to both the company's management and the audit committee in order to address potential issues affecting the reliability of financial reporting.
Step-by-step explanation:
The auditors who become aware of an internal control deficiency are required to communicate this to the company's management and audit committee. A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Once the auditors encounter such deficiencies, they must inform the appropriate parties within the organization so that correct measures can be taken.
The goal is to maintain the integrity and reliability of the financial reporting process. Auditors who become aware of an internal control deficiency are required to communicate this to the auditee or the management of the organization being audited. This communication helps ensure that management is aware of the weakness in their internal control system and can take action to address it.