If You Are a Professional Accountant Who Is Considering Reporting

question 25

Multiple Choice

If you are a professional accountant who is considering reporting noncompliance as contemplated under the NOCLAR standards, you would decide if the matter was significant enough to require reporting if it:

• A)was larger than the company's materiality standards for financial disclosure.
• B)would have increased bonuses.
• C)was self-correcting in the next quarter year and resulted in no distortion.
• D)understated taxes payable.
• E)avoided the exercise of legal covenants from lenders.

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