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Several issues with internal controls are to be reported because they indicate deficiencies and weaknesses which are material and significant in nature. If the auditor believes that these material weaknesses must be reported to the board, he should do so by his own authority.

There were several indications of material weakness in internal controls. And, even if the president had promised to resolve the issues identified by myself as the auditor, it would be in violation of Generally Accepted Accounting Standards under the AICPA. So, I would disregard the President's request. The President would be acting in his own best interest in violation of my professional standards as the auditor.

The material weaknesses indicated by several factors shows that there may be issues in broader policy implementation which is a matter of the board, not the president.

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