This is from a speech entitled Current Issues, Trends, and Open Questions In Audits of Internal Control over Financial Reporting delivered on August 8, 2015 by Jeanette M Franzel, PCAOB Board Member Recently, SEC staff has publicly questioned whether all material weaknesses are being properly identified and disclosed In particular, SEC staff suggested that at least some of the PCAOB's inspection findings related to the audits of internal control over financial reporting are likely indicators of similar problems with management's evaluations of ICFR, and thus potentially also indicative of risk for unidentified material weaknesses Along those lines, SEC staff has expressed surprise that management rarely appears to identify a material weakness in the absence of a material misstatement The SEC staff have also stated that efforts throughout the SEC pertaining to the ICFR requirements are ongoing, coordinated, and increasingly integrated into our routine consultation, disclosure review and enforcement efforts For example, informed by recent work of the SEC's Division of Corporation Finance in reviewing issuer disclosures, SEC staff has paid considerable public attention to the evaluation of control deficiencies by company management Flag question Question 5 Question 510 pts Franzel is making comments about internal control and material weaknesses She is emphasizing that Group of answer choices Auditors have a responsibility to report on material weaknesses The SEC is concerned with managements ability to find material weaknesses when there isnt a restatement The SECs Division of Corporation Finance often works with others to identify deficiencies in ICFR Material weaknesses are oftentimes identified by an auditor in the absence of a restatement 2 Flag question Question 6 Question 610 pts How is Franzel, a PCAOB Board Member, linking her organizations efforts to what the SEC is doing Group of answer choices The SEC and the PCAOB conduct joint inspections of registrants The PCAOB has inspection findings that suggest that auditors are regularly finding material weaknesses and the SEC should take note The SEC is noting that PCAOB inspection findings may indicate that company management is being lax in their evaluation of ICFR Management and the independent auditor are responsible for the operation of a Companys ICFR and the SEC should take note 3 Flag question Question 7 Question 710 pts Although not quoted above, Franzel also stated the following in her speech to the AAA The data show that, often, a material weakness is not identified even when a known misstatement occurs, and suggests that there may be undisclosed material weaknesses in ICFR This statement was surprising to me Provide me with two reasons why such a statement left me scratching my head

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This is from a speech entitled Current Issues, Trends, and Open Questions In Audits of Internal Control over Financial Reporting delivered on August 8, 2015

This is from a speech entitled Current Issues, Trends, and Open Questions In Audits of Internal Control over Financial Reporting" delivered on August 8, 2015 by Jeanette M. Franzel, PCAOB Board Member

Recently, SEC staff has publicly questioned "whether all material weaknesses are being properly identified and disclosed." In particular, SEC staff suggested "that at least some of the PCAOB's inspection findings related to the audits of internal control over financial reporting are likely indicators of similar problems with management's evaluations of ICFR, and thus potentially also indicative of risk for unidentified material weaknesses."

Along those lines, SEC staff has expressed surprise that management rarely appears to identify a material weakness in the absence of a material misstatement.

The SEC staff have also stated that "efforts throughout the SEC pertaining to the ICFR requirements are ongoing, coordinated, and increasingly integrated into our routine consultation, disclosure review and enforcement efforts."

For example, informed by recent work of the SEC's Division of Corporation Finance in reviewing issuer disclosures, SEC staff has paid considerable public attention to the evaluation of control deficiencies by company management.

Flag question: Question 5Question 510 pts

Franzel is making comments about internal control and material weaknesses. She is emphasizing that:

Group of answer choices

Auditors have a responsibility to report on material weaknesses

The SEC is concerned with managements ability to find material weaknesses when there isnt a restatement

The SECs Division of Corporation Finance often works with others to identify deficiencies in ICFR

Material weaknesses are oftentimes identified by an auditor in the absence of a restatement

2. Flag question: Question 6Question 610 pts

How is Franzel, a PCAOB Board Member, linking her organizations efforts to what the SEC is doing?

Group of answer choices

.The SEC and the PCAOB conduct joint inspections of registrants.

The PCAOB has inspection findings that suggest that auditors are regularly finding material weaknesses and the SEC should take note

The SEC is noting that PCAOB inspection findings may indicate that company management is being lax in their evaluation of ICFR

Management and the independent auditor are responsible for the operation of a Companys ICFR and the SEC should take note

3. Flag question: Question 7Question 710 pts

Although not quoted above, Franzel also stated the following in her speech to the AAA: The data show that, often, a material weakness is not identified even when a known misstatement occurs, and suggests that there may be undisclosed material weaknesses in ICFR. This statement was surprising to me. Provide me with two reasons why such a statement left me scratching my head.