A3&4

Question 1

How are previously communicated control deficiencies (not significant nor material weaknesses) communicated in the current year if mgmt decided not to correct due to cost?

Answer 1

No communication is required. Recommunication is only required if the uncorrected deficiency is significant or a material weakness.

Question 2

Cheat to know if cash transfer/deposit was recorded incorrectly

Answer 2

If receipt and disbursement on books are recorded in different periods.

Question 3

Communication related to the inherent limitations of internal control of a nonissuer is required in what document?

Answer 3

The Engagement Letter

Question 4

How are population variability and sample size correlated?

Answer 4

Directly. If variability increases, sample size increases.

Question 5

PPS Sample Size formula

Answer 5

Sample Interval = Tolerable Misstatement/Reliability Factor
Sample Size = Population amt/Sample Interval