Reference no: EM131321689

1) What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls under the PCAOB standards? Likewise how does a material weakness impact the auditor's report on internal controls under the PCAOB standards?

2) Audit Risk consists of inherent risk, control risk, and detection risk.
(a) Please completely define each of the above.

(b) Indicate whether each of the statements below is true or false and explain your position:

(1) The risk that material misstatement will not be prevented or detected on a timely basis by internal controls can be reduced to zero by having effective controls in place.

(2) Detection Risk is a function of the efficiency of an auditing procedure.

(3) Cash is more susceptible to theft than an inventory of coal because it has greater inherent risk?

(4) The Inherent risk of the theft of an inventory of cellphones at a mall store is greater than the misappropriation of cash at a COSTCO Store?

3) Utilizing the "Auditing Through the Computer Approach" explain what types of procedures you would perform as an auditor in evaluating an online order processing system. Name a control that could compensate for inadequate segregation of duties in a computer system.

4) You are the Senior Auditor for WWZ Co. and you have completed the testing of all the accounts. However, prior to issuing your report, what are at least five other procedures or reviews that must be performed prior to issuing your report? Explain your responses