What Would You Do in This Situation?

I am very interested in what you readers think of the following scenario.....

A man and a workplace peer are in a conversation with an auditor.  The auditor is looking at how some new work processes are being executed in their place of business.  Both the man and his peer know that the expectations for running the processes are completely out of whack with the reality they face each day.  However, the scores given out by auditors are scrutinized very carefully by upper management and there is a large amount of pressure to deliver good audit scores.

During the conversation the auditor asks a questions about some of the employees running the process. There is a second's pause, and then the man's peer answers the question in a way that is not completely factual, but will satisfy the auditor's question and will earn the place of business a good score.

Here's my question to you readers.

Do you speak up and correct your peer, possibly costing your company a passing score?

Or, do you remain silent, thinking that because you yourself didn't hide the truth, you don't have a responsibility to say anything more?