For each of the following independent situations relating to the audit of ICFR, indicate the typeof audit report you would issue.

1.During the audit of Wood Pharmaceuticals, you are surprised to find several controldeficiencies in the company's internal control. You determine that there is a reasonablepossibility that any one of them could result in a misstatement that is significant.Although the odds are extremely low that the deficiencies, singly or taken together, willresult in a material misstatement of the company's financial statements, the large numberof problems causes you concern. Management's written assessment concludes that thecompany's ICFR was effective as of the report date.

2.You agreed to perform an audit for Rodriguez & Co., after the client's year-end. Due totime constraints, your audit firm could not complete a full audit of ICFR. However, theevidence you did collect suggests that the company has exceptionally strong ICFR. Youseriously doubt that a material weakness would have been found if time had permitted aFall 201212A.Evaluate identified control deficienciesB.Test the design and operatingeffectiveness of selected controlsC.Plan the audit of ICFRD.Identify controls to test using a top-down, risk-based approach.E.Form an opinion on the effectiveness ofICFRA.Select controls to testB.Identify entity-level controlsC.Understand likely sources ofmisstatementD.Identify significant accounts anddisclosures and their relevant assertions. more thorough audit. Management's written assessment concludes that the company'sICFR was effective as of the report date.

3.George & Diana Company's internal audit function identified a material weakness in thecompany's ICFR. The client corrected this weakness about four months prior to the endof the annual reporting period. Management reassessed controls in the area and foundthem effective. After reevaluating and retesting the relevant controls, you believe thecontrols to have been effective for a sufficient period of time to provide adequateevidence that they were designed and operating effectively as of the end of the client'sreporting period. Management's written assessment concludes that the company's internalcontrol was effective as of the report date.

4.Reynolds' Distilleries identified what you agree is a material weakness and made anadverse assessment in its report on ICFR. The company had not corrected the materialweakness as of the end of the reporting period.

5.Cindy & David Company's management identified a material weakness in the company'sICFR during its assessment process. The client corrected this weakness about a monthprior to the end of the annual reporting period. Management reassessed controls in thearea, and believes they were effective as of the end of the reporting period. Afterreevaluating and retesting the relevant controls, you agree that the new controls are welldesigned, but since the controls over this particular area are applied only once at the endof each month (i.e., the controls have only operated two times since being corrected), youdo not believe you have sufficient audit evidence to assess their operating effectiveness.Management's written assessment concludes that the company's internal control waseffective as of the report date.

6.During the audit of ICFR for Big Al & Larry Industries, you discover several controldeficiencies. You determine that there is more than a reasonable possibility that any oneof them could result in a financial statement misstatement. Although you do not believethat any of the deficiencies taken individually will result in a material misstatement, youbelieve there is a moderately low likelihood that, taken together, the deficiencies couldproduce a material misstatement. Management's written assessment concludes that thecompany's internal control was effective as of the report date.