The First Step for an Auditor Who Concludes an Illegal

question 77

Multiple Choice

The first step for an auditor who concludes an illegal act exists is to:

• A) Bring the matter to the attention of the audit committee
• B) Bring the matter to the attention of the SEC
• C) Assess the impact of the illegal act on the financial statements
• D) Assess the impact of the illegal act on the auditor's opinion

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or acceptable to society or a particular group.

Obedience

Compliance with an order, request, or law or submission to another's authority.

Social Reproduction

The process by which societies transmit social norms, values, and practices across generations, maintaining existing forms of social structure.

Conflict Theory

A sociological perspective that sees social life as a competition, emphasizing the role of coercion and power in producing social order, particularly focusing on the conflicts between different social classes.