While Performing an Audit of a Public Company, the Auditors

question 14

Multiple Choice

While performing 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: $$\begin{array} { | l | c | c | } \hline \text { Item } & \begin{array} { c } \text { CPA Direct Communication } \\\text { With Shareholders }\end{array} & \begin{array} { c } \text { The Process of Filing } \\\text { a Fom 8-K }\end{array} \\\hline \text { A. } & \text { Yes } & \text { Yes } \\\hline \text { B. } & \text { Yes } & \text { No } \\\hline \text { C. } & \text { No } & \text { Yes } \\\hline \text { D. } & \text { No } & \text { No } \\\hline\end{array}$$

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

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Definitions:

Megabyte

A unit of digital information storage or transmission that is approximately one million bytes.

Terabyte

A unit of digital data storage equaling approximately one trillion bytes or 1,024 gigabytes, used to quantify the storage capacity of large systems.

Gigabyte

A unit of digital information storage or memory capacity equal to approximately one billion bytes (or 1,000 megabytes).

Megabyte

A unit of digital information storage or transmission comprised of approximately one million bytes (1,000 kilobytes or 1,024 kilobytes in binary).