Following are examples of control deficiencies that may represent significant deficiencies of material weaknesses. For each control deficiency, indicate whether it is a significant deficiency or material weakness. Justify your decision. a. The entity uses a standard sales contract for most transactions. Individual sales transactions are not material to the entity, Sales personnel age allowed to modify sales contract terms. The entity's accounting function reviews significant or unusual modifications to the sales contract terms but does not review changes in the standard shipping terms. The changes in the standard shipping terms could require a delay in the timing of revenue recognition. Management reviews gross margins on a monthly basis and investigates any significant or unustal relationships. In addition. management reviews the reasonableness of inventory levels at the end of each accounting period. The entity has experienced limited situations in which revenue has been inappropriately recorded in advance of shipment, but amounts have not been material. b. The entity has a standard sales contract, but sales personnel frequently modify the terms of the contruct. The nature of the modifications can affect the timing and amount of revenue recognized. Individual sales transactions are frequently material to the entity. and the gross margin can vary significantly for each transaction. The entity does not have procedures in place for the accounting fanction to regularly review modifications to sates contract term5. Although management reviews gross margins on a monthly basis, the significant differences in gross margins on individual trankactions make it difficult for management to identify potential misstatements- Impropet revenue recognition has occurred, and the amounts have been material. e. The entity lias a standard sales contract, but tales personnel frequently modify the terms of the contract. Sales personnel frequently grant unauthorized und unrecorded sales discounts to customers without the knowledige of the accounting department. These amounts are deducted by customers in paying their invoices and are recorded as outstanding balances on the accounts receivable-aging. Although theie amounts are individually invignificant. when added up they are material and have occurred regularly over the pact few years