If the Auditor Determines That the Company Does Not Comply

question 21

Multiple Choice

If the auditor determines that the company does not comply with relevant laws and regulations,the auditor

• A)should report the noncompliance to management or those charged with governance
• B)must report the noncompliance to management or those charged with governance
• C)should determine whether he has a responsibility to report the noncompliance to outside parties
• D)should report the noncompliance to outside parties
• E)must report the noncompliance to outside parties
• F)both B and C
• G)both C and E
• H)both D and E

---

Definitions:

Interest Payable

The amount of interest expense that has been incurred but not yet paid by a company, often reflected as a liability on the balance sheet.

Straight-Line Method

A method of allocating an asset's cost evenly over its useful life for the purpose of accounting and depreciation.

Carrying Value

The book value of an asset or liability on the balance sheet, considering any depreciation, amortization, or impairment costs.

Face Value

The nominal value printed on a financial instrument like a bond or a stock certificate, representing its legal value.