Question

Create a scenario where external auditors determined that a company's internal controls were deficient, but such a deficiency might not mean that a material weakness existed. Ascertain the impact on the audit plan if additional deficiencies are discovered on other related internal controls. Support your position.

Answer 1

Create a scenario where external auditors determined that a company's internal controls were deficient, but such a deficiency might not mean that a material weakness existed. Ascertain the impact on the audit plan if additional deficiencies are discovered on other related internal controls. Support your position.There were a few employees in my department that have system access to easily conduct fraudulent activity. After evaluating the process and financial reports, the auditors determined that the deficiency did not mean that a material weakness existed. Our overall accounting procedures include multi-level approval process which deters and eliminates the potential for illegal transactions to occur. •From the e-Activity, identify the accounts that the fraud had affected, and analyze the auditor’s responsibility to detect fraud. Suggest key internal controls that would have either prevented or detected the fraudulent behavior or transactions

Management and Internal Control:Create a scenario where external auditors determined that a company's internal controls were deficient, but such a deficiency might not mean that a material weakness existed. Ascertain the impact on the audit plan if additional deficiencies are discovered on other related internal controls. Support your position.Company Pearl was required by a lender to have an audit performed on its financial statements. Company Pearl has an accounting department that is filled with entry level workers that is gaining experience on the job while working in the accounting department. The entry level accountants is supposed to follow the GAAS, however there is a lack management that enforces this and check the accountants work to make sure it is correct and true. Despite having nonexistent management and entry level workers, their work over the internal control was prepared properly and correct