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:

Bank Account

A financial account maintained by a bank or other financial institution for the deposit and withdrawal of money by the account holder.

Check

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Writing A Check

The act of completing a check form to make a payment from a checking account to a person or entity.

Must Be Written

Indicates that specific information or instructions need to be documented in writing, typically for legal, safety, or record-keeping reasons.