Which of the Following Is NOT a Requirement of Section

question 12

Multiple Choice

Which of the following is NOT a requirement of Section 10A of the Securities Exchange Act of 1934 for auditors of public companies with respect to illegal acts?

• A) Determine whether it is likely that an illegal act has occurred
• B) Determine what the possible effect of the illegal act is on the financial statements
• C) Determine whether management participated in the illegal act
• D) Inform management and assure that the audit committee knows about any material illegal act that has been detected

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Definitions:

Reasons

The explanations or justifications for an action or event, often addressing why something happens.

Negative Messages

Communications that convey unfavorable or disappointing information.

Best Endings

Best Endings refer to the most effective ways to conclude a piece of writing, ensuring it leaves a lasting impression and meets its intended purpose.

Negative Message

Information or feedback provided that may be viewed unfavorably or is not what was hoped for.