What Should an Auditor Do When Becoming Aware of Violations

question 23

Multiple Choice

What should an auditor do when becoming aware of violations of the FCPA?

• A)Contact foreign officials in the country where the client has business operations.
• B)Notify the audit committee about the violations,their circumstance,and the effect on the financial statements.
• C)Contact the U.S.marshals.
• D)Design internal controls to deter improper payments.

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Definitions:

Crime Rates

The number of crimes committed per unit of population within a given time period, usually expressed per 100,000 people.

Multiple Correlation Coefficient

A statistical measure that represents the strength of the relationship between multiple independent variables and one dependent variable.

Predicted Values

The values estimated by a statistical model or equation based on the inputs of explanatory variables.

Explanatory Variables

Variables in a statistical model that are used to explain changes or variations in a response variable.