Cohen and Single, LLP, are auditing the ICFR and financial statements of Copley and Sons, a public company that sells supplies to government agencies. Copley and Sons has a 12/31 fiscal year end. Cohen and Single conclude that the financial statements for the current and prior year are fairly stated. However, they found a material weakness in ICFR. There is a lack of separation of duties because the company's CFO has the ability to change passwords on employee's computer identification numbers and has unlimited access to a computer terminal through which any journal entry can be entered without approval and review. Management's evaluation of ICFR is also as of 12/31, and management's report states that ICFR is not effective due to the computer security problem causing the lack of separation of duties. Draft Cohen and Single's combined audit report with opinions on the financial statements and ICFR as described.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q58: An auditor is responsible for communicating which
Q59: If an auditor has serious going concern
Q60: Company A hired Q to perform its
Q61: The auditors should communicate any material concerns
Q62: Describe the different types of ICFR audit
Q64: Triad, Inc. sells body armor to various
Q65: What types of audit reports are issued
Q66: Under which circumstances should an auditor NOT
Q67: An adverse opinion on ICFR includes:
A) The
Q68: You are approached by Dillon Audit Firm
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents