If the Client Is Publicly Traded,Section 10A(b)of the Securities Exchange

question 81

True/False

If the client is publicly traded,Section 10A(b)of the Securities Exchange Act requires auditors to take action upon discovery of an illegal act if the act has a material effect on the financial statements.

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Definitions:

Credit Cards

Payment cards issued by financial institutions that allow cardholders to borrow funds with which to pay for goods and services with the promise to repay the loan along with any agreed-upon fees.

Unauthorized Individuals

Persons who do not have official permission to access certain information, facilities, or systems, posing a potential security risk.

Company's Facilities

The physical resources of a company, including buildings, machinery, and equipment.

Risk Management

A process that identifies, controls, and minimizes the impact of threats, in an effort to reduce risk to manageable levels.