Auditing Standards Require the Auditor to Communicate All Management Frauds

question 150

Multiple Choice

Auditing standards require the auditor to communicate all management frauds and illegal acts to the audit committee

• A) only if the act is immaterial.
• B) only if the act is material.
• C) only if the act is highly material.
• D) regardless of materiality.

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Definitions:

Bullet Lists

A format that organizes information into a list of items preceded by bullet points, aiding readability and highlighting key points.

Organizational Culture

The shared values, beliefs, and norms that influence the behavior of individuals within an organization.

Discourse Community

A group of people involved in and communicating about a particular subject, field, or area of interest.

Critical Thinking

The goal-oriented examination and review of a matter to reach a conclusion.