What is the Audit Committee then expected to do with Such Information on Reported SDs and MWs?

If SDs or MWs are identified, the audit committee should ask the following:

  • Are these issues pervasive throughout the organization or limited to specific location(s), account(s) or types of transaction(s)?
  • Were any of these issues noted in previous years and, if so, what does this mean for establishment of an appropriate tone at the top and oversight of internal control?
  • What is management doing to remediate the issues? Is the scope and timing of this remediation adequate?
  • What additional controls, policies and/or procedures need to be implemented to ensure a more robust control environment?
  • Given the issues noted, are there other areas that need re-evaluation?

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