How Long Do Management and the Audit Committee Have to Act

question 52

Multiple Choice

How long do management and the audit committee have to act if the independent auditor reports possible illegal acts to them?

• A) One week
• B) One month
• C) Three business days
• D) One business day

---

Definitions:

Pessimistic Attitude

A mindset inclined towards expecting the worst possible outcomes or focusing on the negatives in any situation.

Positive Thinking

A mental attitude focusing on the bright side of life and expecting positive results.

Cognitive Theories

Psychological theories emphasizing mental processes such as perception, memory, and problem-solving as sources of understanding behavior and mental state.

Negative Thinking

A cognitive process characterized by pessimistic attitudes and expectations about oneself or the world.