ACFE Exam CFE-Fraud-Prevention-and-Deterrence Topic 2 Question 64 Discussion

Actual exam question for ACFE's CFE-Fraud-Prevention-and-Deterrence exam

Question #: 64
Topic #: 2

[All CFE-Fraud-Prevention-and-Deterrence Questions]

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?

APeter should make a public announcement that he is withdrawing from the audit engagement.

BPeter should provide a written communication about the findings to those charged with governance.

CPeter should report the findings in writing directly to the appropriate regulatory agencies

DPeter should discreetly work with senior management to correct the underlying internal control deficiencies.

Show Suggested Answer

Suggested Answer: B

by Janine at Mar 30, 2023, 08:06 PM

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15 days ago

I think Peter should provide a written communication to those charged with governance.

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