The steps in defect life cycle varies from company to company. But the basic flow remains the same. However, below I'm describing a basic flow for Bug Life Cycle:

* A Tester finds a bug. Status --> Open
* Test lead review the bug and authoriz the bug. Stats --> Open
* Development team lead review the defect. Stats --> Open
* The defect can be authorized or unauthorized by the development team. (Here the status of the defect / bug will be Open (For Authorized Defects) & Reject (For Unauthorized Defects).
* Now, the authorized bugs will get fixed or deferred by the development team. Status of the fixed bugs will be Fixed & Status will be Deferred for the bugs which got Deferred.
* The Fixed bugs will be again re-tested by the testing team (Here based on the Closure of the Bug, the status will be made as Closed or if the bug still remains, it will be re-raised and status will be Re-opened.

The above-mentioned cycle continues until all the bugs / defects gets fixed in the application.