If an Auditor Uncovers an Illegal Act at a Public

question 110

Multiple Choice

If an auditor uncovers an illegal act at a public company, the auditor must notify:

• A) local law enforcement officials.
• B) the Public Company Accounting Oversight Board.
• C) the Securities and Exchange Commission.
• D) all of the above.

---

Definitions:

CCA Class

refers to the Capital Cost Allowance Class, a categorization used in Canadian tax to determine the depreciation rate for tax purposes on assets.

Annual Depreciation

The method of allocating the cost of a tangible asset over its useful life on a yearly basis.

Cost of Debt

The effective rate that a company pays on its total debt, reflecting the expense of borrowing funds.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.