audit ..help needed

1. For each control deficiency below, indicate whether it is a significant deficien weakness or neither. Justify your decision and Indicate to who if anyone reported to ficiency, material it has to be a. XYZ Company processes a significant number of routine intercompany transactions ciate on a monthly basis. Individual intercompany transactions are not material and primarily relate to balance sheet activity; for example, cash transfers between business units to finance normal operations. A formal mgmt. policy requires monthly reconciliation of intercompany accounts and confirmation of balances between business units. However, there is no process in place to ensure performance of these procedures. As a result. Detailed reconciliation of intercompany accounts are not performed on a timely basis. Management does perform monthly procedures to investigate selected large-dollar intercompany account differences. In addition, management prepares a detailed monthly variance analysis of operating expenses to assess their reasonableness