If an Illegal Act Is Discovered During the Audit of a Publicly-Held

question 7

Multiple Choice

If an illegal act is discovered during the audit of a publicly-held company, the auditor should:

• A)notify the regulatory authorities.
• B)determine who was responsible for the illegal act.
• C)intensify the audit.
• D)report the act to high-level personnel within the client's organisation.

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Definitions:

Cause-and-Effect Relationship

A connection between two events where one (the cause) directly results in the occurrence of the other (the effect).

Research Method

A systematic approach to conducting research that involves collecting data, analyzing information, and presenting findings.

Infer

To deduce or conclude information from evidence and reasoning rather than from explicit statements.

Extraneous Variables

Extraneous variables are those that are not the focus of a study but may influence its outcome, potentially confounding the results if not controlled.