Which of the Following Requires Auditors to Take Specific Steps

question 49

Multiple Choice

Which of the following requires auditors to take specific steps if they learn during the course of an audit that a client may have committed an illegal act?

• A)Private Securities Litigation Reform Act of 1995
• B)Securities Exchange Act of 1934
• C)Sarbanes-Oxley Act
• D)Dodd-Frank Act

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Definitions:

Payback Period

The duration of time it takes to recover the cost of an investment, calculated as the point where net cash flow equals the initial investment.

Initial Cost

The initial expense associated with the purchase or investment in an asset before operational costs are considered.

Future Cash Inflows

Predicted incoming money to a company or project from operations, investments, or financing activities in the future.

Gelled Electrolyte

A semi-solid form of electrolyte used in batteries, typically to prevent leakage and improve performance and safety.