1. According to PCAOB Auditing Standard (AS 2201) (https://pcaobus.org/Standards/Auditing/Pages/AS2201.aspx), what factors should auditors consider when evaluating the severity of a deficiency in a control that directly addresses a risk of material misstatement? 2. PCAOB AS 2201 distinguishes the difference between a deficiency in design and a deficiency in operation. Does the Assistant Controller’s failure to adequately review the Vendor Change Form represent a deficiency in the design or operating effectiveness of the control? 3. Based on guidance in AS 2201, determine if the failure in the vendor request change form control indicative of a material weakness in internal control over financial reporting. 4. SEC Regulation S-K requires that management provide a report on a registrant’s ICFR in the company’s Form 10-K. Assuming the company and the auditor concluded that this internal control failure indicates a material weakness in internal control, what information would the company be expected to disclose? 5. In light of the identified deficiency, auditors should consider a possibility that the deficiency may have an impact on other controls, and/or the similar problem may exist in other controls. What implications does the failure to adequately review the Vendor Change Form have on other controls?

Evaluate the current compensation philosophy for your organization or an organization of your choosing (from a third-person perspective). Write a three-to-five page paper (not including the title and reference pages). Your paper should be written in a scholarly third-person tone; it should be in APA format. In addition to the introduction and conclusion, your paper should address the following: Evaluate the organization’s current compensation philosophy and propose ways to enhance or revamp the current compensation philosophy to meet the changing needs of the organization and its employees. Examine key factors within the internal and external environment including the mission and strategic focus of the organization, as well as the financial and cultural aspects of your organization (i.e., they cannot have a compensation philosophy where they “lead” the market if the organization does not have the financial resources) that should influence this philosophy. The proposed philosophy itself should be no more than a short paragraph. Identify the key factors that should contribute to the organization’s development based on your proposed organizational philosophy. Remember to write from a third-person perspective. Do not include wording like “my company’s philosophy is …” Instead include wording like “XYZ Company Name’s philosophy is …” Remember to write about the company and the company’s philosophy; do not refer to you or your connection to the company. In addition to the text, cite at least two scholarly references to support your discussion. Carefully review the Grading Rubric (Links to an external site.)Links to an external site. for the criteria that will be used to evaluate your assignment. Chapter 11: Compensating ExecutivesChapter 12: Compensating the Flexible Workforce: Contingent Employees and Flexible Work SchedulesMartocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th Edition). Hoboken, New Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0 Atricle Gordon, J.N. (2005). Executive compensation: If there's a problem, what's the remedy? The case for "compensation discussion and analysis". Journal of Corporation Law, 30(4), 675-702. Retrieved from the Proquest database. Harris, J. (2009). What's wrong with executive compensation? Journal of Business Ethics: Supplement, 85, 147-156. (Document ID: 1655246711). Retrieved from the Proquest database. Henderson, M.T., & Spindler, J.C. (2005). Corporate heroin: A defense of perks, executive loans, and conspicuous consumption. Georgetown Law Journal, 93(6), 1835-1883. Retrieved from the Proquest database. Websites