Cohen and Single, LLP, are auditing the ICFR and financial statements of
Copley and Sons, a public company that sells supplies to government agencies.Copley
and Sons has a 12/31 fiscal year end. Cohen and Single conclude that the financial
statements for the current and prior year are fairly stated. However, they found a
material weakness in ICFR. There is a lack of separation of duties because the companys'
CFO has the ability to change passwords on employee's computer identification
numbers and has unlimited access to a computer terminal through which any
journal entry can be entered without approval and review.Management's evaluation
of ICFR is also as of 12/31, and management's report states that ICFR is not effective
due to the computer security problem causing the lack of separation of duties.
1. Draft Cohen and Single's combined audit report with opinions on the financial statements
and ICFR as described.
2. Draft a management representations letter for Copley
and Sons to submit to Cohen and Single LLP. The management representations letter
should address all the points needed for both the financial statement and ICFR
Independent Auditor's Report:
To the Board of Directors and Shareholders of Copley and Sons
We have audited Copley and Sons financial statements for the financial year ended 31st December XXXX. The financial statements include the organization's balance sheet, income statement, statement of cash flow, and statement of changes in shareholders' equity. The management of Copley and Sons is responsible for the financial statements whereby they ensure that financial statements are prepared according to appropriate accounting policies. The auditor's responsibility is to develop an opinion on the financial statements based on the audit conducted.
The audit report is prepared solely for Copley and Sons' members in line with Companies Act requirements. Our audit was undertaken to establish an opinion over the company's financial statement and no other purpose. Our audit also investigated the company's internal controls over financial reporting to determine effectiveness.
Responsibilities of directors and auditors:
Copley and Sons' management is responsible for preparing financial statements in line with relevant laws ...
The expert creates audit reports for LLP and ICFR financial statements.