If an Internal Auditor Discovers a Suspected Illegal Act Involving

question 3

Multiple Choice

If an internal auditor discovers a suspected illegal act involving financial statement presentation at the company she serves,the internal auditor:

• A) Has a duty to inform her supervisor, even if she suspects her supervisor was aware of, and permitted, this act to occur
• B) Has a duty to report this misconduct to the SEC if she serves a client that is a publicly traded company
• C) Has the opportunity to collect a significant reward under the Dodd-Frank Act if the she informs the SEC
• D) Cannot collect a reward, even if the SEC ultimately recovers substantial sums as a direct result of information supplied to it by the internal auditor

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Definitions:

Relative Motion

The concept that the motion of an object is always determined relative to some other object.

Perceiving

The process of becoming aware of something through the senses, a fundamental aspect of human cognition and experience.

Cue

A signal or prompt that influences behavior or evokes a specific response in classical or operant conditioning.

Visual Cliff

An experimental setup used to measure infants' perception of depth and their understanding of fear of heights.