AS5 indicates that certain circumstances are indicators of a material weakness. What are these circumstances, and why do you think the PCAOB assessed them as being of such importance?

 Identification of fraud, whether or not material, committed by senior management

•  Restatement of previously issued financial statements to reflect the correction of a material misstatement
• Identification by the auditor of a material misstatement of financial statements in the current period
• circumstances that indicate that the misstatement would not have been detected by the company's ICFR
•  Ineffective oversight of the company's external financial reporting and ICFR by the company's audit committee
  These would all affect preparation of financial to be in accordance with US GAAP