A junior staff member makes the following comment to you abo…

A junior staff member makes the following comment to you about the audit plan: “I think this a very high risk engagement; therefore materiality should be very high”. Is this staff member correct about setting materiality high? Fully explain your reasoning. (2 marks)

Describe one significant internal control weaknesses related…

Describe one significant internal control weaknesses related to a lack of segregation of duties. Then describe how an error could occur as a result of the weakness. Lastly, provide management with a recommendation for improvement. Be sure to link to the case facts provided (generic responses that are not specific to this case will not be awarded any marks). (6 marks)   Note: only the first one will be marked.