Gordon is a new staff auditor on the Fine Dining of London Co. engagement and is responsible for conducting some of the ICFR controls tests on the engagement. In the course of his audit work, Gordon finds instances where a control he is testing has numerous deviations from the prescribed procedures. Gordon discusses it with the senior and manager on the engagement. Based on evaluating the severity of the ICFR deficiency, they all conclude that there is only a very limited risk of the control deficiency causing a material misstatement in the financial statements. Therefore, it is not considered a material weakness.
What is Gordon required to document in the work papers since the deficiency does not result in a material weakness? Will Gordon’s test result cause the audit team to change its plans concerning the financial statement audit? If so, how?

  • CreatedJanuary 21, 2015
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