Which of the Following Statements Best Describes the Auditor's Responsibility

question 31

Multiple Choice

Which of the following statements best describes the auditor's responsibility with respect to illegal acts that do not have a material effect on the client's financial statements?

• A) Generally, the auditor is under no obligation to notify parties other than personnel within the client's organization.
• B) Generally, the auditor is under an obligation to inform the PCAOB.
• C) Generally, the auditor is obligated to disclose the relevant facts in the auditor's report.
• D) Generally, the auditor is expected to compel the client to adhere to requirements of the Foreign Corrupt Practices Act.

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Definitions:

Numerical Techniques

Computational algorithms used to solve mathematical problems, including equations, optimizations, and simulations.

Graphical Techniques

Methods used to analyze and visualize data through graphs and charts for better understanding.

Histograms

A graphical representation of data using bars of different heights to show the frequency of data in consecutive and non-overlapping intervals.

Coefficient Of Correlation

A numerical measure that quantifies the degree and direction of the linear relationship between two variables, ranging from -1 to +1.