As a result of obtaining an understanding of the accounting and internal control systems and tests of
control, the auditor may become aware of weaknesses in the systems. The auditor should make
management aware, as soon as practical and at an appropriate level of responsibility, of material
weaknesses in the design or operation of the accounting and internal control systems, which have come
to the auditor's attention. The communication to management of material weaknesses would ordinarily
be in writing. However, if the auditor judges that oral communication is appropriate, such
communication would be documented in the audit working papers. It is important to indicate in the
communication that only weaknesses which have come to the auditor's attention as a result of the audit
have been reported and that the examination has not been designed to determine the adequacy of
internal control for management purposes.
COMMUNICATION OF WEAKNESSES IN INTERNAL CONTROL
CAclubindia
