 in this presentation. We will discuss internal control matters and the communication of them. Internal control matters including control deficiencies, significant deficiencies, and material weakness. So we're going to go through the definition of what a control deficiency is, what a significant deficiency is, and what a material weakness is. Starting with the control deficiency, a control deficiency is when the design or operation of a control does not allow management or employees in the standard course of performing their assigned function to prevent or detect and fix misstatements on a timely basis. So let's go through that again. So the control deficiency of obviously we're having a problem with the internal controls here. So this is going to be, and we're going to report it as a control deficiency is when the design or operation, so the design or the operation of the control that's been put in place, does not allow management or the employees, so the employees that are involved in this process, in the standard course of performing their assigned functions. So there's no, we can't sit there and say, well, they could have done it if they did these other things that are outside of what they're assigned to do. No, the control means that it's in their assigned function to prevent or detect and fix misstatement on a timely basis. So they're not, it's not allowing them to prevent or detect and fix on a timely basis, the misstatement, that's going to be a deficiency in the control, of course, leading to a higher risk that the misstatements are going to be misstated in some way. Then we have a significant deficiency. We're stepping it up a level to significant deficiency, one deficiency or a combination of various deficiencies with internal controls that is less severe than a material weakness, but is significant enough to merit attention by those in charge of governance. So let's read that one more time, significant deficiency, one deficiency or a combination. So we might be talking about a single deficiency or a combination of them with internal controls. So obviously, we're talking about the internal controls, the procedures, the safeguard over things like the financial statements being represented in accordance with a set of standards like generally accepted accounting principles that is less severe than a material weakness, which is going to be the next thing we'll look at a material weakness. This is less severe than the material weakness, but is significant enough to merit attention by those in charge of governance. So it's something that we would want to bring to the attention to those in charge of governance. Then we're going to go to the material weakness again, stepping it up a notch material weakness, a deficiency or a combination of deficiencies in internal controls resulting in a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and fixed on a timely basis. So this is going to be pretty bad here. We're going to say now we're on the level of the material weakness. That's one of our key terms material weakness, a deficiency or combination of deficiencies in internal controls. So we're considering once again, the internal controls, those procedures, those safeguards, that red tape in essence that's put in place checks and balances resulting in a reasonable possibility. So we have our term reasonable possibility for a reasonable person to think that a material misstatement. So now we have a misstatement that is material in nature, which are the ones that we as auditors are of course most concerned of of the entity's financial statements, which of course is what we are auditing, what we're concerned of here, the financial statements will not be prevented or detected and fixed, which means that there might be a material misstatement that the control will not be picking up on a timely basis. So that's the material weakness.