If an Auditor of Financial Statements Required by the 1934

question 29

Multiple Choice

If an auditor of financial statements required by the 1934 Act becomes aware of an illegal act,the auditor must:

• A) inform the issuer's management and make sure the audit committee or the board of directors is adequately informed.
• B) notify the SEC within one day of discovering the illegal act.
• C) resign if the issuer does not notify the SEC of the illegality within ten business days.
• D) be subject to criminal penalties if the auditor willfully violates the Reform Act by not resigning or furnishing reports to the SEC.

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Definitions:

Weak Arguments

Arguments that lack solid reasoning, evidence, or both, often failing to convincingly support the stated claim.

Tolerance for Ambiguity

The ability to remain comfortable and react constructively in situations that are unclear, complex, or not immediately understandable.

Name Brand

A brand that is widely recognized by the public and usually associated with a certain level of quality, reliability, and status.

Self-monitoring

The act of observing and regulating one’s own behavior in social situations to fit into the surrounding environment or achieve a personal goal.