The Auditors' Responsibility to Communicate Findings with Respect to Fraud

question 78

Multiple Choice

The auditors' responsibility to communicate findings with respect to fraud can best be summarized as:

• A) Communicate to the audit committee the existence of fraud but not the amount involved
• B) Communicate to the appropriate level of management both material and immaterial amounts of fraud that are detected
• C) Communicate to the SEC the existence of fraud but not the amount involved
• D) Communicate to the SEC both material and immaterial amounts of fraud that are detected

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Definitions:

Title VII

A part of the 1964 Civil Rights Act that forbids job discrimination on the grounds of race, color, religion, gender, or country of origin.

Family and Medical Leave Act

A U.S. federal law that provides employees with unpaid, job-protected leave for certain family and medical reasons.

Paid Leave

Employment benefit that allows an employee to take time off from work while still receiving their normal pay.

Eligible Employees

Workers who meet certain criteria set by their employer or government regulations, qualifying them for specific benefits or programs.