If a Client Commits an Illegal Clearly Inconsequential Act,the Accountant

question 93

True/False

If a client commits an illegal clearly inconsequential act,the accountant need not report it to the client's management and audit committee.

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Definitions:

Event-driven Funds

Investment funds that seek to exploit pricing inefficiencies that may occur before or after a particular corporate event.

Market-neutral Hedge Funds

Market-neutral hedge funds aim to achieve returns with minimal exposure to overall market risk by employing strategies that attempt to offset potential losses in the markets.

Volatile Returns

Refers to the significant ups and downs in the value of an investment over a short period.

Arbitrage Opportunity

A situation where a trader can make a profit from the price difference of an asset in different markets or forms without taking significant risk.