You have discussed with the president and the CFO of Beachy Corporation several material weaknesses in internal control that have come to your attention during the audit. At the conclusion of the discussion, the president and CFO assure you that they will personally take steps to remedy the problems and that there is no reason for you to bring the items to the attention of the board of directors. The president explains that the board is focused on strategic policy issues and should not be bothered with day-to-day management problems.