If management makes appropriate adjustments to correct the implications of a fraud discovered in a financial statement audit,but does not take appropriate steps to modify internal controls,upon what does this have a direct impact?

Question

Quizplus · Accepted Answer

Failure to modify internal controls after discovering fraud affects the auditor's perception of the overall control environment, as it indicates potential weaknesses in preventing future fraud.

If Management Makes Appropriate Adjustments to Correct the Implications of a Fraud