PCAOB Standard 5 states that fraud of any magnitude by senior management is at least a significant deficiency in internal controls.

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PCAOB Standard 5 requires auditors to identify and assess the risk of material misstatement due to fraud, and states that fraud by senior management is at least a significant deficiency in the system of internal control. This means that it must be reported to the audit committee and management, and may also result in a material weakness in internal controls.

PCAOB Standard 5 States That Fraud of Any Magnitude by Senior