Which of the Following Is Correct Concerning Required Auditor Communications

question 26

Multiple Choice

Which of the following is correct concerning required auditor communications about fraud?

• A)Fraud that involves senior management should be reported directly by the auditor to the audit committee regardless of the amount involved.
• B)Fraud with a material effect on the financial statements should be reported directly by the auditor to the Securities and Exchange Commission.
• C)Any requirement to disclose fraud outside the entity is the responsibility of management and not that of the auditor.
• D)The professional standards provide no requirements related to the communication of fraud, but the auditor should use professional judgment in determining communication responsibilities.