Control Environment considerations: 4. This fraudulent activity was not material to the financial statements; however, the event has an effect on the culture of the organization. What does management need to do now that the fraud has been discovered? prepare at least (3) areas related to management's response now that the fraud has been discovered with a short paragraph explaining each 5. What is the Board of Directors responsibility now that the fraud has been discovered? prepare at least (2) areas related to the Board's responsibility now that the fraud has been discovered with a short paragraph explaining each 6. What control environment principles are lacking or ineffective? Identify (at least 2) controls for each of the following categories: definitely lacking and may be lacking