p O words Question 3 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. ABC Company processes a significant number of intercompany transactions on a monthly basis. Intercompany transactions relate to a wide range of activities, including transfers of inventory with intercompany profit between business units, allocation of research and development costs to business units, and corporate charges. Individual intercompany transactions are frequently material. A formal management policy requires monthly reconciliation of intercompany accounts a confirmation of balances between business units. However, there is no process in place to ensure that these procedures are performed on a consistent basis. As a result, reconciliations of intercompany accounts are not performed on a timely basis, and differences in intercompany accounts are frequent and significant does not perform any alternative controls to investigate significant intercompany account differences Edit View Insert Format Tools Table T Paragraph BIVA oo 12pt de # O . were to search