In the report on internal control by Milacron's management, they indicate that they are going to remediate the control deficiencies they had encountered.

Required

a. Identify the control deficiencies that management identified in its report on internal control.

b. For each control deficiency identified answer the following:

a. How would management identify the deficiency?

b. How is management planning on remediating the deficiency?

c. How would the auditor gather evidence to determine that the control deficiency has been remediated?

c. Management indicates that the deficiencies may cause the company to violate their debt covenants.

a. Explain why the deficiencies might violate debt covenants.

b. What are the implications to the company if the debt covenants are violated?

c. Why are lenders interested in the effectiveness of a company's internal control?

d. Management asserts that the control deficiencies did not lead to material misstatements in the financial statements:

a. How would management know that there were no material misstatements?

b. Is the auditor required to attest to this assertion by management? Explain why or why not.