While Performing Their Audit, the Audit Team Uncovers Fraud That

question 39

Multiple Choice

While performing their audit, the audit team uncovers fraud that is likely to have an immaterial affect on the financial statements taken as whole. In this case the auditors should:

• A) plan on additional audit procedures to determine the exact amount of the fraud.
• B) communicate with legal authorities as to the identity of the fraudsters.
• C) disclose the fraud to the appropriate level of management or to the audit committee.
• D) call the whistleblower hotline and name the suspected individuals.

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Definitions:

Abnormal People

This term is not appropriate or accurate in psychological or clinical contexts; it's important to describe individuals in terms of their specific conditions or behaviors without judgment.

Neurotic Parents

Parents who exhibit chronic anxiety or personal unrest, which may impact their parenting style and their children's development.

Excessive Poverty

A severe level of financial hardship where individuals or families lack the means to meet basic needs like food, shelter, and clothing.

Dethronement

In psychoanalytic theory, the process by which a child's status is changed or diminished, often due to the arrival of a sibling.