Question 11. During the planning stage of the audit of Zander Co, the auditor has found that controls over the authorisation of overtime payments have deteriorated over the year and has concluded that the controls over payroll are significantly deficient.

Which of the following is NOT an appropriate action to be taken by the auditor is respect of the significant deficiency?

The significant deficiency should be brought to the attention of those charged with governance using a written communication.

The significant deficiency should be brought to the attention of shareholders at Zander Co's annual general meeting.

The auditor should increase sample sizes when performing tests of detail on payroll.

The auditor should reduce the materiality level used when performing tests of detail on payroll.