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NEW QUESTION 38
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?

• A. Peter should make a public announcement that he is withdrawing from the audit engagement.
• B. Peter should discreetly work with senior management to correct the underlying internal control deficiencies.
• C. Peter should provide a written communication about the findings to those charged with governance.
• D. Peter should report the findings in writing directly to the appropriate regulatory agencies

Answer: C

NEW QUESTION 39
In the context of a fraud examination, integrity requires all of the following EXCEPT:

• A. Trustworthiness
• B. Refusal to admit errors
• C. A well-developed sense of moral philosophy
• D. Avoidance of conflicts of interest

Answer: B

NEW QUESTION 40
According to G20/OECD Principles of Corporate Governance (the Principles):

• A. All of the above
• B. A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders
• C. Governments should have in place a corporate governance framework that promotes transparent and fair markets
• D. Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure

Answer: C

NEW QUESTION 41
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