Under the Private Securities Litigation Reform Act (PSLRA), If an Auditor

question 17

Multiple Choice

Under the Private Securities Litigation Reform Act (PSLRA) , if an auditor concludes that an illegal act with a material effect on the financial statements has been reported to, but not dealt with by senior management, the auditor should next report his/her conclusions to:

• A) The Securities and Exchange Commission
• B) The company's board of directors
• C) The office of the controller/comptroller for the appropriate state
• D) The Federal Bureau of Investigation

---

Definitions:

Midline

An imaginary line that divides the body into equal left and right halves.

Palmaris Brevis

A small muscle in the palm of the hand that assists with gripping and manipulating objects.

Distal Phalanx

The bone at the tip of each finger and toe, forming the end part of the digits.

Thumb

The first digit of the hand, distinct in its ability to rotate and oppose the other four fingers, allowing for a strong grip and fine manipulation skills.