Significant deficiencies are defined as conditions that:

A. Could adversely affect the organization's ability to initiate, record, process, and report financial data in the financial statements.

B. Exists when the design or operation of a control does not allow the company's management or employees to detect or prevent misstatements in a timely fashion.

C. Relates to either a necessary control that is missing or an existing control that is so poorly designed that it fails to satisfy the control's objective.

D. Results in a reasonable possibility that a material misstatement exists in financial statements.