Review the Case-ABC Retailers - Internal Controls
Then, Response to the following:
1. What are the key considerations when evaluating the severity of a deficiency in a control that directly addresses a risk of material misstatement?
2. Does the Assistant Controller's failure to adequately review the Vendor Change Form represent a deficiency in the design or operating effectiveness of the control?
3. Is the failure in the vendor request change form control indicative of a material weakness in internal control over financial reporting?
4. Would the deficiency warrant disclosure in the Company's Form 10-K, Item 9A? If so, what information would the Company be expected to disclose?
5. What implications does the deficiency have on other direct or indirect controls?
Attachment:- Case-Handout.rar