Question -
1. While performing an audit on the internal control over financial reporting for AirWaves Corporation, your audit team finds what it considers to be significant deficiency. AirWaves is a large, private e company. What steps would you take to communicate this finding?
2. You are performing an audit on North Natural Gas (NSNG). Alana, an NSNG employee, has responsibility for reconciling bank statements with entity's cash accounts. You determine, however, that Alana has never been taught how to reconcile statements. In effect, the statements have not been properly reconciled for 2 years. How would you judge the significance on this control deficiency? How would you classify this deficiency?