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During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Peter do with regard to these findings?
Suggested Answer: B
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37 comments · newest first
SA
Sabra
12 months ago
Working with management sounds risky; they might not fix it.
EL
Elfriede
12 months ago
Not sure if he should go public right away, though.
LO
Louis
12 months ago
Surprised he found significant deficiencies! That's a big deal.
CA
Carin
1 year ago
I agree, option B is the right move here.
BR
Brianne
1 year ago
Peter should definitely communicate the findings to governance.
VI
Vicki
1 year ago
I feel like option D seems too informal; I don't think he should just work with management without reporting it first.
YO
Yong
1 year ago
I'm a bit uncertain about whether Peter should go straight to regulatory agencies or if he should first inform management.
WA
Wai
1 year ago
I remember a practice question where the auditor had to report significant deficiencies, and I think option B aligns with that.
BU
Buffy
1 year ago
I think Peter should definitely communicate the findings to those charged with governance, but I'm not entirely sure if it should be written or just verbal.
DE
Deangelo
1 year ago
Alright, time to put on my troubleshooting hat. From the looks of it, the issue is with the guest shell's network configuration, so I'd focus on options that address DNS, gateways, and nameservers. B and D seem like the most likely candidates to resolve this problem.
ES
Estrella
1 year ago
Hmm, I'm a bit unsure about this one. I know send logging is important, but I'm not sure which specific setting or configuration is required. I'll need to think this through carefully.
GA
Gaston
1 year ago
I remember discussing Cisco DNA Center in the context of managing the architecture, but not if it's part of the overlay itself.
BA
Barrie
1 year ago
I think the answer is C. The child is making a verbal response to get access to the desired items, which fits the definition of a mand.
RO
Rosalind
1 year ago
I'm going with Option C. Reporting the findings directly to regulatory agencies is the best way to ensure these issues are taken seriously and properly addressed.
EL
Elfriede
1 year ago
Option D might be tempting, but it's not the right way to go. Peter shouldn't be secretly working with management, that could be seen as collusion.
AS
Asha
1 year ago
Peter should communicate the deficiencies to the audit committee or those charged with governance.
CA
Catalina
1 year ago
Peter should consider issuing a qualified opinion on the financial statements.
LA
Lauran
1 year ago
Peter should discuss the deficiencies with the audit client's management.
WI
Wilford
1 year ago
I agree with Option B. Peter needs to let the appropriate people within the organization know about these internal control issues so they can be addressed properly.
DA
Daron
1 year ago
Option C: Peter should keep the deficiencies to himself and not disclose them to anyone.
AH
Ahmed
1 year ago
Option B: Peter should communicate the deficiencies to the appropriate levels of management within the organization.
GL
Glenn
1 year ago
Option A: Peter should ignore the deficiencies and continue with the audit.
GL
Glenna
2 years ago
Whoa, Option A? That's like throwing the baby out with the bathwater. Peter shouldn't be making any public announcements, that's just going to cause chaos.
DO
Dominque
1 year ago
Peter should evaluate the implications of the deficiencies on the audit report and consider the need to modify the audit opinion.
PH
Phil
1 year ago
Peter should communicate the deficiencies to the audit committee or those charged with governance.
LE
Leonardo
1 year ago
Peter should consider the impact of the deficiencies on the financial statements and determine if adjustments are necessary.
EF
Effie
1 year ago
Peter should discuss the deficiencies with management and request additional information.
LA
Lawrence
1 year ago
Peter should evaluate the severity of the deficiencies and consider the need to modify the audit opinion.
BU
Buck
1 year ago
Peter should communicate the deficiencies to the audit committee and discuss the potential implications.
GL
Glory
1 year ago
Peter should consider the impact of the deficiencies on the financial statements and determine if adjustments are necessary.
AS
Ashley
1 year ago
Peter should discuss the deficiencies with management and request additional information.
LE
Lenny
2 years ago
Option B seems like the most appropriate course of action. Communicating the findings to those charged with governance is the ethical and professional way to handle this situation.
VA
Vanesa
1 year ago
Yes, communicating the findings to those charged with governance is the ethical and professional way to handle this situation.
KA
Kara
1 year ago
Option B seems like the most appropriate course of action.
LU
Luz
2 years ago
I disagree. Peter should report the findings directly to the regulatory agencies to ensure transparency.
NG
Ngoc
2 years ago
I agree with Kaitlyn. It's important for the governance to be informed about the deficiencies.
KA
Kaitlyn
2 years ago
I think Peter should provide a written communication to those charged with governance.