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:

Hydrogen-bonded Dimers

Pairs of molecules that are connected by hydrogen bonds, often observed in carboxylic acids and alcohols.

Molecular Weights

The sum of the atomic weights of all atoms in a molecule, representing the mass of a molecule relative to the unified atomic mass unit.

Carboxylic Acids

Organic acids characterized by the presence of at least one carboxyl group (-COOH), widely occurring in nature and used in various industrial applications.

Aldehydes

Organic compounds characterized by the presence of a carbonyl group attached to at least one hydrogen atom, used in a wide range of chemical synthesis processes.