O words Question 4 1 pts For the control deficiency below, indicate whether it is a significant deficiency, material weakness or neither. Justify your decision and Indicate to who if anyone, it has to be reported to 1. UK Company has a standard sales contract, but sales personnel frequently modify the terms of the contract The nature of the modification can affect the timing and amount of revenue recognized. Individual sales transactions are frequently material to the entity, and gross margin can vary significantly for each transaction. The entity does not have procedures in place for the accounting function to regularly review modifications to sales contract terms. Although management reviews gross margins on a monthly basis, the significant differences in gross margins on individual transactions make it difficult for management to identify potential misstatements, Improper revenue recognition has occurred, and the amounts have been material Edit View Insert Format Tools Table Paragraph 12pt BIU A & Togo : R & O BI a E O search