You are part of the KGR audit team for a small, private company, Wkly Work. The company is a temporary working business, connecting individuals looking for work with companies looking to hire temporary laborers on a weekly basis. The accounting department only has 3 employees including the CFO, Controller, and Staff Accountant. The CFO performs all tasks related to accounts with high risk of theft and accounts with sensitive information such as payroll information. Your audit manager wants you to assess if there are any potential controls deficiencies related to the CFO's tasks. In your responses consider the objectives, components, and organizational structures of the COSO framework as well as how the auditor might select and design tests of controls.

1a - What could go wrong relating to the CFO's actions?

1b- Which of the five internal control principles of the COSO Control Environment is most likely violated by this CFO's duties?

1c- Based on your knowledge of the "operations objectives" of internal control, what is one reason why Wkly Work may be okay with the CFO maintaining his current duties?

1d- In your professional judgment should Wkly Work change the internal controls around cash and payroll? Why or why not?

1c- What is one example of an effective control that could be suggested to management?