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Governance, Risk, Audit & Privacy · Advanced

Significant Deficiency

Control deficiency less severe than a material weakness but important enough to merit attention of those charged with governance.

Definition

Significant deficiencies must be communicated to the audit committee under SOX and auditing standards. Several significant deficiencies may aggregate into a material weakness.

Example

Inconsistent review of privileged access logs is reported to the audit committee as a significant deficiency.

Exam tip

Multiple significant deficiencies can combine into a material weakness.

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