If Specific Integrity Violations Are Suspected or Detected, Auditors May

question 56

Multiple Choice

If specific integrity violations are suspected or detected, auditors may find it necessary to seek guidance from legal counsel, investigative staff, or law enforcement officials to get all of the following information EXCEPT:

• A) Identify applicable laws and regulations.
• B) Design specific tests of compliance with applicable laws and regulations.
• C) Changing the results of the audit or investigation.
• D) Assist with areas of the audit or investigation requiring special expertise.

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenue.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.

Interest Expense

The cost incurred by an entity for borrowed funds.

Debt/Equity Ratio

A financial metric showing the balance between the amount of equity provided by shareholders and the debt incurred to support a company's assets.