Per Auditing Standard 5 (AS5), the auditor must evaluate the severity of each control deficiency to determine whether the deficiencies, individually or in combination, are material weaknesses. The key question to ask is…what parameters should be considered when determining materiality? In planning and performing the audit, the auditor is not required to search for deficiencies that, individually or in combination, are less severe than a material weakness. There are several definitions of materiality utilized in the profession that are promulgated by the American Institute of Certified Public Accountants (AICPA), Public Company Accounting Oversight Board (PCAOB), Committee of Sponsoring Organizations (COSO) and others. This course covers several aspects about the concepts of material weakness and significant deficiency. We evaluate recent cases of material weakness disclosures and updates from the PCAOB. Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content. Field of Study: Auditing