Apart from assessing control risk, an auditor's consideration of internal control lends insight into inherent limitations and significant deficiencies that ought to be communicated to management under SAS No. 60, "Internal Control Structure Related Matters Noted in an Audit."

Required:

1. Describe the inherent limitations an auditor should recognize when considering the potential effectiveness of internal control.

2. Under generally accepted auditing standards, what is the auditor's obligation to communicate significant deficiencies detected while considering internal control?