How Long Do Management and the Audit Committee Have to Act

question 52

Multiple Choice

How long do management and the audit committee have to act if the independent auditor reports possible illegal acts to them?

• A) One week
• B) One month
• C) Three business days
• D) One business day

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Definitions:

Punitive Damages

Financial compensation awarded in a lawsuit intended to punish the defendant for egregious or malicious behavior, and deter similar conduct in the future.

Merchants

Individuals or businesses engaged in the trade of goods, services, or commodities for profit.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.

Resale Price

The price at which an item is sold after it has already been purchased from the original seller or manufacturer.