If Material Fraud Perpetrated by Management Is Discovered by the Auditor,the

question 55

Multiple Choice

If material fraud perpetrated by management is discovered by the auditor,the nature of the fraud should always be reported directly to:

• A)the PCAOB
• B)the SEC
• C)the FBI
• D)the audit committee of the company

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Definitions:

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their employees from bribing foreign officials to gain a business advantage.

Fifth Amendment

An amendment to the U.S. Constitution protecting individuals from self-incrimination, double jeopardy, and ensuring due process of law.

Self-Incrimination

The act of implicating oneself in a crime or sharing information that could lead to one's own criminal prosecution.

Computer Fraud and Abuse Act

U.S. legislation that prohibits unauthorized access to computers and networks, designed to protect against hacking and other forms of cybercrime.