25.143 Professional standards categorize deficiencies as follows:
• a deficiency in internal control exists when the design or operation of a control does not allow the company’s management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A deficiency includes missing controls that are necessary to prevent, or detect and correct misstatements on a timely basis.
• a deficiency should be classified as a significant deficiency if, by itself or in combination with other deficiencies, it is less severe than a material weakness, yet important enough to merit attention by those charged with governance
• a deficiency should be classified as a material weakness if, by itself or in combination with other deficiencies, there is a reasonable possibility that a material misstatement (in the company’s annual or interim financial statements) will not be prevented, or detected and corrected on a timely basis