An Auditor Has Uncovered Suspicious Expense Reimbursements Paid to the Chief

question 28

Multiple Choice

An auditor has uncovered suspicious expense reimbursements paid to the chief executive officer of its audit client.What should the auditor do?

• A)Discuss the matter with the chief executive officer.
• B)Report the matter in writing to the chief financial officer.
• C)Report the matter in writing to the audit committee.
• D)Report the matter in writing to the federal government.

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Definitions:

Facilitating Functions

include activities that help in the smooth execution of transactions and exchanges in the marketplace, such as logistics, financing, and information provision.

Purchasing Products

The process of acquiring goods or services to fulfill the needs or requirements of a business or consumer.

Resale

The act of selling a product or service to another party after it has been purchased from the original seller.

Transactional Function

A business activity that involves the buying and selling of goods and services, including all processes that enable these transactions.