Which of the Following Statements Is Correct Concerning Significant Deficiencies

Which of the following statements is correct concerning significant deficiencies noted in an audit of a nonissuer?

A) Significant deficiencies are material weaknesses in the design or operation of specific internal control components.
B) The auditor is obligated to search for significant deficiencies that could adversely affect the entity's ability to record and report financial data.
C) Significant deficiencies should not be re-communicated each year if management has acknowledged its understanding of such deficiencies.
D) The auditor should separately identify those significant deficiencies that are considered to be material weaknesses.