Part A

As the engagement partner, you are responsible for the evaluation of internal controls regarding lease related accounts at Crest Outfitters. You need to answer following questions and record your assessment outcomes in the work paper. You can create your own work paper. 

1. Identify transactions related to lease related accounts.

2. Determine WCGW (what can go wrong).

3. Describe risks associated to financial statement accounts and assertions related to leases.

4. Identify internal controls in place to prevent or detect the risk of misstatement.

5. Evaluate control risks.

6. Comments on strength (minimum 1 item) and weakness (minimum 1 item) of the client’s internal controls.

7. Record the audit plan in the work paper.