Cohen and Single, LLP, Are Auditing the ICFR and Financial

question 55

Essay

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.

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Definitions:

Bulb Syringe

A small suction device used primarily for gentle nasal aspiration in infants to clear nasal passages.

Smothering

The act of causing difficulty in breathing by covering the face or obstructing the air supply, often leading to suffocation.

Developmental Needs

The essential conditions and factors required at different stages of life to achieve optimal growth, psychological development, and well-being.

Peek-a-boo

A popular game played with infants and toddlers, involving hiding one's face and then suddenly revealing it, typically to elicit surprise and joy.