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Material Weakness

What is Material Weakness?

A significant deficiency in internal controls that creates a reasonable possibility of a material misstatement not being prevented or detected.

Audit and Assurance

Frameworks that govern material weakness

ISO 27001:2022View framework →NIST Cybersecurity Framework 2.0View framework →

What the standards actually require on material weakness

Requirements naming material weakness across 2 standards, quoted from the control text.

PCAOB AS 2201 - Audit of Internal Control Over Financial Reporting (ICFR)2 controls

Per PCAOB AS 2201 paragraphs 62-69: deficiency evaluation + classification + communication. Requirements include (a) evaluate Deficiencies including severity considering likelihood + potential magnitude + compensating controls + (b) classify deficiencies as de...

ASTWO-7 · Deficiency Evaluation, Material Weakness, and Communication →
APRA CPS 230 Operational Risk Management1 control

The entity must remediate material weaknesses in its operational risk management including control gaps, weaknesses and failures, supported by clear accountabilities and assurance, addressing root causes promptly, and must keep identified gaps, weaknesses and...

CPS230-P31 · Remediation of Material Operational Risk Weaknesses →

Questions people ask about material weakness

What is Material Weakness?
A significant deficiency in internal controls that creates a reasonable possibility of a material misstatement not being prevented or detected.
Why is Material Weakness important for compliance?
Material Weakness is a key concept in Audit and Assurance. Understanding material weakness helps organizations meet regulatory requirements, reduce risk, and demonstrate due diligence during audits. Our compliance platform maps 686 frameworks with 311K cross-framework control mappings.
Which compliance frameworks address Material Weakness?
Material Weakness appears in the requirement text of PCAOB AS 2201 - Audit of Internal Control Over Financial Reporting (ICFR), APRA CPS 230 Operational Risk Management. Across these standards we have identified 3 controls that name it directly, each linked to the control text on the compliance platform.
Where can I learn more about Material Weakness?
Explore our compliance framework pages to see how material weakness applies across different standards and regulations. Our implementation guides provide step-by-step guidance, and the compliance platform offers AI-powered analysis of how this concept maps across 686 frameworks.

See how Material Weakness applies across compliance frameworks

Our platform maps 686 frameworks with 311K cross-framework control mappings. Explore how this concept is addressed across standards.

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Written and maintained by Gerard Blokdyk, The Art of Service.