An Auditor Suspects Its Client Is Committing Illegal Acts That

question 7

Essay

An auditor suspects its client is committing illegal acts that will have a material impact on its financial statements.What is the auditor legally required to do and under what circumstances would the auditor directly notify the SEC?

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Definitions:

Obsessive-Compulsive Disorder

A mental disorder characterized by recurring unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as a means to cope with anxiety.

Body Dysmorphic Disorder

A mental disorder characterized by the obsessive idea that some aspect of one's own body part or appearance is severely flawed and warrants exceptional measures to hide or fix it.

Disorder-Specific Behaviors

Actions or patterns of behavior that are characteristic of, or unique to, a particular psychological disorder.

Serotonin Activity

Serotonin activity describes the functioning of serotonin, a neurotransmitter, in the brain, which influences mood, emotion, and sleep among other processes.