If Management Makes Appropriate Adjustments to Correct the Implications of a Fraud

Multiple Choice

If management makes appropriate adjustments to correct the implications of a fraud discovered in a financial statement audit,but does not take appropriate steps to modify internal controls,upon what does this have a direct impact?

A) The auditor's opinion on the financial statements.
B) The client's executive compensation.
C) The auditor's perception of the overall control environment.
D) All previous work performed by the auditor on this client.