Which of the Following Is Correct Concerning Requirements About Auditor

question 39

Multiple Choice

Which of the following is correct concerning requirements about auditor communications about fraud?

• A)Fraud that involves senior management should be reported directly to the audit committee regardless of the amount involved.
• B)All fraud with a material effect on the financial statements should be reported directly by the auditor to the Securities and Exchange Commission.
• C)Fraud with a material effect on the financial statements should ordinarily be disclosed by the auditor through use of an "emphasis of a matter" paragraph added to the audit report.
• D)The auditor has no responsibility to disclose fraud outside the entity under any circumstances.

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Definitions:

Primary Care

The first point of contact within the healthcare system, providing comprehensive and continuous care for a variety of health issues.

Suicide Precautions

Measures implemented to prevent an individual from attempting or committing suicide, often involving close supervision.

Stress Reduction Techniques

Various methods or strategies, such as meditation, exercise, or therapy, employed to decrease stress and improve mental health.

Partial Hospitalization Program

An organized program of psychiatric services provided on an outpatient basis to serve as a substitute for hospitalization in a psychiatric facility.