A deficiency which implies that there is a reasonable possibility of misstatement in the financial statements that is significant but not material is a significant deficiency.
In accounting, a significant deficiency refers to a single weakness or combination of weaknesses in the internal controls associated with the financial reporting, that is, it is less severe than a material control weakness and yet, it is sufficient to merit the scrutiny of those responsible for administering an entity's financial reporting.
In a financial statement, the presence of this deficiency does not mean that a material misstatement has occurred, but rather, it indicates the possibility of such an occurrence in the future. So, the job of a company’s external auditors is to make the management aware of any significant deficiencies they find.
Read more about Significant Deficiency
brainly.com/question/17329935
#SPJ1
