While Performing an Audit an Audit of a Public Company,the

question 58

Multiple Choice

While performing an audit an audit of a public company,the auditors discovered material illegal acts and resigned due to the client's refusal to disclose them.The auditors' reason for resignation should be disclosed through: $$\begin{array}{l}\begin{array} { c} \text { } & \text { CPA Direct Communication } & \text { The Process of Filing } \\\text { Item } & \text { With Shareholders } & \text { a Form 8-K } \\\text { A) } & \text { Yes } & \text { Yes } \\\text { B) } & \text { Yes } & \text { No } \\\text { C) } & \text { No } & \text { Yes } \\\text { D) } & \text { No } & \text { No }\end{array}\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Non-liquidated Damages

Compensation amounts not specified in a contract, to be determined in case of a breach according to the actual harm suffered.

Employer Fines

Penalties imposed on employers for violations of employment laws or regulations.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society.

Certainty Avoidance

A cognitive behavior aiming to prevent ambiguity and ensure clarity in communication or information processing.