PCAOB's Auditng Standard 2 is a comprehensive guideline on how an audit of internal control over financial reporting can be performed in conjunction with an audit of financial statements. One of the most basic requirements of AS 2 is for the auditor to express an opinion whether management's assessment of the effectiveness of internal control over financial reporting is fairly stated in all material aspects and the company maintained effective internal control over financial reporting.
In a scenario where an auditor determines that a material weakness exists, the first thing an auditor should do is communicate in writing the material weakness / signficant deficiency noted to the management and audit committee. Here's the approach my team took when we determined a material weakness during SOX compliance.
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