The Auditors' Responsibility to Communicate Findings with Respect to Fraud

question 14

Multiple Choice

The auditors' responsibility to communicate findings with respect to fraud can best be summarized as:

• A)Communicate to the audit committee the existence of fraud but not the amount involved
• B)Communicate to the audit committee both material and immaterial amounts of fraud that are detected
• C)Communicate to the SEC the existence of fraud but not the amount involved
• D)Communicate to the SEC both material and immaterial amounts of fraud that are detected

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Definitions:

Friends

Individuals with whom one has a bond of mutual affection, typically exclusive of sexual or family relations.

Employer

An individual or organization that hires and pays people to work for them, offering wages or salaries in exchange for the employees' labor or services.

TV Stations

Broadcasting outlets that transmit television programs for public or cable viewing, often catering to specific demographics or interests.

Dissociative Reference Group

A group with which individuals do not want to associate, influencing their behavior by avoidance.