External auditors are required to report significant deficiencies and material weaknesses in internal control to those charged with governance. The ACFE manual states:
"Auditors must communicate in writing to those charged with governance all significant deficiencies and material weaknesses identified during the audit." Reference: ACFE Fraud Examiners Manual, 2020 International Edition - Auditors' Fraud-Related Responsibilities, Section 4.503.

The ACFE manual notes that codes of conduct not only serve as a reference for guiding behavior but also enable enforcement and internal discipline within a profession.
"A code of ethical conduct serves as a reference and benchmark for ethical guidance... [and] facilitates practical enforcement and internal discipline throughout a profession." Reference:ACFE Fraud Examiners Manual, 2020 International Edition -Ethics and Professional Conduct, Section 4.901.

Management is ultimately responsible for ensuring the effectiveness of the organization's anti-fraudprogram.
They set the tone at the top, establish internal controls, and ensure that the necessary resources and oversight mechanisms are in place to prevent and detect fraud. Other stakeholders, such as auditors and compliance officers, provide support but do not bear ultimate responsibility.

Scope of Fraud Risk Assessment:
The fraud risk assessment team must consider various factors, including:
A: Incentive programs:Can create pressures that lead to fraud.
B: Management override of controls:A key risk for fraud occurring despite existing safeguards.
C: Risks to reputation:Fraud incidents can harm the organization's public image.
Comprehensive Discussion:
Considering all these factors ensures a thorough identification of inherent fraud risks.
Conclusion:The fraud risk assessment team should discuss all listed items.
References:ACFE fraud risk assessment guidance.