If an Auditor of Financial Statements Required by the 1934

question 29

Multiple Choice

If an auditor of financial statements required by the 1934 Act becomes aware of an illegal act,the auditor must:

• A) inform the issuer's management and make sure the audit committee or the board of directors is adequately informed.
• B) notify the SEC within one day of discovering the illegal act.
• C) resign if the issuer does not notify the SEC of the illegality within ten business days.
• D) be subject to criminal penalties if the auditor willfully violates the Reform Act by not resigning or furnishing reports to the SEC.

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Definitions:

Netherlands

A country located in Northwestern Europe, known for its flat landscape, windmills, tulip fields, and cycling routes.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Personal Goals

Objectives or aims that an individual sets for themselves, reflecting personal aspirations and ambitions.

Group Goals

Objectives set by a group that are intended to be achieved through collaborative effort.