While Performing an Audit of a Public Company,the Auditors Discovered

question 17

Multiple Choice

While performing an audit of a public company,the auditors discovered material illegal acts and resigned due to the client's refusal to disclose them.The auditors' reason for resignation should be disclosed through:  



$\begin{array} { lc c } & \text { CPA Direct Corrrrurucation With } & \\\text { Item} & \text {Shareholders } & \text { The Process of Filing } \\ \text { A } & \text { Yes } & \text { Yes } \\ \text { B. } & \text { No } & \text { Yes } \\ \text { C. } & \text { Yes } & \text { No } \\ \text { D. } & \text { No } & \text { No } \end{array}$

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Definitions:

Differential Carrier

The housing that contains the gears of a vehicle's differential, which allows the wheels to rotate at different speeds.

Shim Pack Thickness

The total combined thickness of a set of shims, used to adjust clearances or alignments in machinery.

Gear Lube Viscosity

Refers to the thickness or resistance to flow of gear lubricants, important for ensuring the correct lubrication properties for gears and transmissions.

Severe Winter Conditions

Extreme weather situations characterized by low temperatures, heavy snowfall, ice, and dangerous road conditions, affecting travel and infrastructure.