Final answer:
Management override of internal control policies and procedures can raise concerns for auditors as it indicates potential fraud or material misstatements in financial statements.
Step-by-step explanation:
Management override of internal control policies and procedures can raise concerns for auditors. It refers to situations where management intentionally bypasses or manipulates the established internal control systems for personal gain or to misstate financial statements. This can lead auditors to suspect fraud or material misstatements.
**Examples**: Management overriding the segregation of duties by having control over multiple aspects of a financial transaction. Management manipulating accounting records to hide certain transactions. Auditors take management override seriously because it weakens the effectiveness of internal controls and increases the risk of fraud and errors in financial reporting.