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I am still working on these, please give me your advise thank you Question1 40points Using the Case Materials provided and any available accounting, auditing, systems etc standard as a means to back up your response, please answer the following: What are the key considerations when evaluating the design and testing of the operating effectiveness of internal controls in conjunction with a financial statement audit? Include considerations in determining what additional audit evidence to obtain about controls that were operating during the roll forward period. Answer: Internal control evaluation is meant to review and assess the structure of accountability within the organization. An effective internal control gives assurance regarding the integrity of financial reporting. Fraud can easily be detected through internal controls. Such internal control can help accuracy in financial reporting. The key considerations when evaluating the design and testing of the operating effectiveness of internal control in conjunction with a financial statement audit are 1) the assessment of the existing financial structure. The assessment of existing structure can indicate that the system of internal control is robust enough to avoid the risk of material area error in financial reports. The assessment is also to look at whether the accounting method it is going to use is on the basis of cash or accrual. 2) Segregation of Duties. The auditors must make sure that there is segregation of duties between those handling cash and deposits, approval over spending and disbursement. This is imperative for accountability purposes. The auditors also need to look at the internal policy that identifies someone who signs checks and the number of signatures required in excess of a certain amount. Payment must be approved by a designated person before payment is issued. Monthly statements have to be reconciled to canceled checks. When preparing a payroll, it has to follow appropriate state and federal regulations and the company's policy. 3) A disclosure of any weaknesses in the internal controls must be attached to the financial report at the end of every fiscal year. Management is not allowed to conclude the internal controls of the company if weakness has been detected. 4) Taxes such as Social Security and Medicare paid on each employee must be monitored to make sure they are paid when due. 5) Monitor cash in hand and conduct cash flow analysis frequently. The roll forward period, in accounting, is when people use prior data on assets and liabilities to establish a baseline for a new accounting period. Accountants can use the roll forward to track data through multiple accounting cycles. There are several approaches to carrying over data from a previous accounting period, including just transferring the latest balances or setting an arbitrary date for the data transfer. Accountants must be consistent about the method they use to make sure their records are accurate. In general, roll-forward refers to the period between the interim test date and the fiscal year end. Tests of controls are conducted during the rollforward period. Therefore, the key considerations in determining what additional audit evidence to obtain about controls that were operating during the roll forward period are 1) risk assessment of the roll forward period 2) the length of the roll forward period. The higher the risk or the longer the period, the more evidence we need. Appropriate auditing procedure can be 1) Updating lead schedule and comparing the year-end balance with the corresponding balance at interim. 2) Designing substantive analytical procedures and tests of details. 3) Performing cutoff procedures. Q2Was the engagement team's assessment of the evaluation of the design of the controls appropriate? Answer: No. Firstly, according to PCAOB Staff views \"Use of information technology (IT). A smaller, less complex company with less complex business processes and centralized accounting operations might have less complex information systems that make greater use of off-the-shelf packaged software without modification. In the areas in which off-the-shelf software is used, the auditor's testing of information technology controls might focus on the application controls built into the pre-packaged software that management relies on to achieve its control objectives and the testing of IT general controls might focus on those controls that are important to the effective operation of the selected application controls.\" Secondly, According to the case excerpt- \"ZOU Fencing currently uses a sophisticated warehouse management system (the Warehouse K-Series System), which allows the Company to (1) record sales upon shipment of goods out of the warehouse, (2) automatically price fence sales on the basis of standard pricing tables, and (3) generate multiple reports for the evaluation of ZOU Fencing's operations .\" Question 3 (10 points) Revenue Risk 1 Was the team's interim and rollforward planned procedures to test the operating effectiveness of controls appropriate? Question 4 (10 points) Revenue Risk 2 Was the engagement team's assessment of the evaluation of the design of the controls appropriate? Question 5 (10 points) Revenue Risk 2 Was the team's interim and rollforward planned procedures to test the operating effectiveness of controls appropriate? Question 6 (10 points) Revenue Risk 3 Was the engagement team's assessment of the evaluation of the design of the controls appropriate? Question 7 (10 points) Revenue Risk 3 Was the team's interim and rollforward planned procedures to test the operating effectiveness of controls appropriate