There should be a change in the audit strategy because based on the substantive procedures, the local audit team noted that the control at Company X level is not precise enough to prevent and detect material misstatements at the local level. We should change the nature, timing and extent of the substantive procedure, but the audit strategy can remain as “rely on controls” since because the primary team was able to obtain sufficient evidence that the common control is operating effectively. There should be no change in the audit strategy since the control is assessed to be Effective for Company X and the strategy should be consistent for all affiliates with a homogenous process. There should be no change because the audit strategy has already been finalized. The issue on the threshold used in performing the control is not a control exception and is only an attribute that should be added in the local audit team’s working paper.