For auditing where there are deficiencies in management would not affect material weakness statements would be basically poor quality control or poor practice and enforcement of policies in management. That could range from inefficiency in employees, time cards, inefficiency in quality of product and supply’s wasted in process of work in process would be a deficiency by means of management which can exist in factories, jewelers, shops that create product or service quality management. These inefficiencies would not affect the financial statements for materiality because everything can be accounted correctly, but would only verify the deficiencies in the management in higher product costs, excessive supplies used which effect cost of goods sold or higher wages/salary pay.
Having internal controls in a company is very important. It helps prevent fraud and detected errors. However, if more than one person has access to accounting and makes some kind of change, it can affect the accounting. How to prevent this from happening is to put a block on the system. It can only be changed by the authorization of a manger, and the manager has to put a password in to unlock it. Unfortunately, if the damage has already been done, the auditor will have to investigate and look at past transactions and information. They will have to try and compare information to see if they are able to find the error.
Accounting scandals happen all the time. It is unfortunate, but people are sneaky.