You work as an associate for a PCAOB$-$registered public accounting firm. You are

assigned to the Vintage Wineries $($VW$)$ audit engagement for the year$-$ended December $31,$

$2007.$ As part of the firm$$s integrated audit of VW$,$ you have the task of evaluating the

controls surrounding VW$$s use of spreadsheet models in its financial reporting process.

These spreadsheet models determine the dollar amounts of certain journal entries relating

to VW$$s fixed assets, accumulated depreciation, and depreciation expense. VW has multiple

spreadsheet models outside of its core accounting software, which was implemented in late

$2003.$ While the new software is capable of handling most of the calculations performed

by VW$$s custom spreadsheet models, the accounting personnel have yet to find the time

to transfer the data over to the new software. Preparing documentation for Section $404$

compliance during this same period has consumed a majority of their time