C$12\mathrm{.}1$ Understanding internal control, fraud risk assessment, and substantive procedures

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A$.$ Analysis and evaluation: Evaluate the effectiveness of CIRI$$s control environment. You may evaluate each individual component of the control environment but then develop an overall conclusion regarding the control environment and its influence on other aspects of internal control.

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B$.$ Analysis and evaluation: Using the table below, evaluate the factors associated with the risk of fraud and the effectiveness of control activities with respect to the occurrence assertion for purchases and payables associated with the EDI purchasing system.

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$2.$ Analysis: Identify internal control deficiencies that you find in the EDI purchasing system.

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C$.$ Evaluation: Prepare a letter with the two most important internal control recommendations that you have for management. Each specific recommendation should describe the current system, explain the risk involved, and make specific recommendations for improvement. Focus on issues raised by the new system and not on issues that have been raised in prior audits.