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:

Flexibility

The capability to adapt to new, different, or changing requirements, conditions, or environments.

Responsiveness

The quality of reacting quickly and positively; in a business context, it often refers to the speed and efficiency with which an organization responds to customers or changes.

Operations Technology

Is the combination of resources, knowledge, and techniques that creates a product or service output for an organization.

Artifacts

Objects created by humans that are typically of cultural or historical interest.