When an Investigation of the Discovery of Facts Existing at the Report

question 28

Multiple Choice

When an investigation of the discovery of facts existing at the report date confirms the existence of the fact and the auditor believes the information is important to those relying or likely to rely on the financial statements, the auditor should immediately:

• A) take steps to prevent future reliance on the audit report.
• B) notify the SEC or other regulatory agency.
• C) notify the audit committee.
• D) resign from the engagement.
• E) take no action since the auditor is not responsible for such matters.

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Definitions:

Ventral Root

The part of a spinal nerve that emerges from the anterior portion of the spinal cord, carrying motor neurons to the body's muscles.

Sensory Fibers

Nerve fibers that transmit sensory information from the peripheral sense organs to the central nervous system.

Motor Fibers

Motor fibers are nerve fibers that transmit impulses from the nervous system to muscles, causing them to contract and produce movement.

Sensory Root

The part of a spinal nerve that carries sensory information from the peripheral body parts back to the spinal cord.