Who Should the Auditors First Notify If They Discover a Material

question 49

Multiple Choice

Who should the auditors first notify if they discover a material fraud?

• A)The PCAOB.
• B)The SEC.
• C)The management of the company.
• D)The audit committee of the company.

---

Definitions:

Country

A distinct geographic territory with its own government, recognized as a sovereign state.

Uncertainty Avoidance

A cultural dimension that describes the extent to which a society tolerates ambiguity and uncertainty.

Cultural Preference

The tendency of individuals or groups to favor certain beliefs, practices, or items because of cultural backgrounds.

Structured Situations

Scenarios or environments where the procedures, rules, and objectives are clearly defined and organized.