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.

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Definitions:

Public Opinion

The aggregate of individual attitudes or beliefs held by the adult population on any given issue or topic.

Illegitimate Power

Power that is gained or exercised through unjust, non-consensual, or unethical means, often lacking recognized or legitimate authority.

Vertical Mosaic

A concept that describes a society where individuals and groups are ranked according to various hierarchical social characteristics like ethnicity, income, and occupation.

Elite Theory

A theory in sociology and political science that posits a small minority, consisting of members of an economic and social elite, holds the most power and thus governs the majority.