Care For Kids Case

1. Factors an auditor should consider to determine if a deficiency, significant deficiency, or material weakness exists include: * The significance of the risk * The likelihood that a material misstatement will occur * The characteristics of the class of transactions, account balance, or disclosure involved * The nature of the specific controls used by the entity, in particular, whether they are manual or automated * Whether the auditor expects to obtain audit evidence to determine if the entity’s controls are effective in preventing or detecting material misstatements. 2. Additional information needed to complete an assessment: * The nature of further audit procedures * The timing of further audit procedures * The extent of further audit procedures * The nature of tests of controls * The timing of tests of controls * The extent of tests of controls * The nature of substantive procedures * The timing of substantive procedures * The extent of substantive procedures 3. Communications required to be made to those charged with governance: * A statement that the purpose of the auditor’s consideration of internal control was to express an opinion on the financial statements and not to express and opinion on the effectiveness of the entity’s internal controls * A statement that the auditor does not express an opinion on the effectiveness of the entity’s internal controls * A statement that the auditor’s consideration of internal control was not designed to identify all deficiencies or material weaknesses * A definition of material weakness and, where relevant, significant deficiency * A description of the significant deficiencies identified and, if applicable, an identification of those significant deficiencies