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?

Congratulations!! After reading your letter, the CEO of Chip's Widgets, Inc. is beginning to see that an operations manager may have some value for his company. However, he is a shrewd businessperson who feels he just made a significant investment in additional staff and will not hire an operations manager based on one good letter. You still have some work to do because Mr. Chip has now asked you to present the points in your letter in greater detail to him and his two business partners.He would also like you to explain how recruitment and selection of an operations manager will add to his company's strength, and he would like to understand current human resource trends and how those trends might help the company. In addition, because he has business contacts in other industries, he wants you to help him explore outsourcing some of the HR functions just as he does with payroll and legal services, in lieu of hiring an operations manager.To complete this assignment, develop a PowerPoint presentation that contains the following slides:cover slideA slide that explains what strategic human resources means and how strategic recruitment and selection can strengthen growing companies, in particular, and offer them a competitive advantageA slide that reiterates the benefits of hiring an operations manager that you included in your letterAt least one slide that outlines your proposed recruitment strategy for the operations manager positionA slide that highlights current trends in the employment market and explains their impact on strategic human resources planning; in the Notes section of the slide, discuss the Affordable Care Act and other legislature that could impact staffing levels and plansA slide that examines the advantages and disadvantages of outsourcing and outlines how these advantages and disadvantages influenced your proposed recruitment strategyA summary slide to reiterate the benefits of your planned recruitment strategyA slide containing at least two references from credible sources that you used in your research for this presentation, formatted according to APA standards.For all slides except the cover and reference slides, include a minimum of 250 words in the Notes section of each slide that explains your rationale and provides further details for the information included in your slides. This information would form the narrative of your talking points in an actual verbal presentation.