The Private Securities Litigation Reform Act of 1995 Requires an Auditor

question 44

Multiple Choice

The Private Securities Litigation Reform Act of 1995 requires an auditor to:

• A) report to the Securities and Exchange Commission a client's illegal act that has a material impact on the financial statements of the client when the client has failed to take remedial action.
• B) resign from an audit engagement when the client commits an illegal act that has a material impact on the financial statements of the client and the client has failed to take remedial action.
• C) inform a client's shareholders of the client's illegal act that has a material impact on the financial statements of the client when the client has failed to take remedial action.
• D) force a client to disclose to its shareholders and to the Securities and Exchange Commission a client's illegal act that has a material impact on the financial statements of the client when the client has failed to take remedial action.

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Definitions:

Brachiocephalic Vein

A large vein in the upper chest that is formed by the union of the internal jugular and subclavian veins and drains blood from the head, neck, and upper extremities.

Precava

A term not recognized as a standard anatomical or medical key term, indicating it may be incorrect or misspelled. NO.

External Jugular Vein

A vein located on each side of the neck that drains blood from the head, neck, and upper chest area into the superior vena cava.

Subclavian Vein

A large vein located under the collarbone (clavicle) that drains blood from the upper extremities back to the heart.