Answer the following question based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters.

Required

a. Based on your findings from the Cloud 9 problems in Chapters 11, 12, and 13, evaluate whether Cloud 9 has any significant deficiencies or material weaknesses in internal control.

b. Based on everything you know about the audit of Cloud 9, prepare a report of items to be communicated to the audit committee of Cloud 9’s board of directors.