The Auditors' Responsibility to Communicate Findings with Respect to Fraud

question 14

Multiple Choice

The auditors' responsibility to communicate findings with respect to fraud can best be summarized as:

• A)Communicate to the audit committee the existence of fraud but not the amount involved
• B)Communicate to the audit committee both material and immaterial amounts of fraud that are detected
• C)Communicate to the SEC the existence of fraud but not the amount involved
• D)Communicate to the SEC both material and immaterial amounts of fraud that are detected

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Definitions:

Wastage

The unnecessary or inefficient use of resources, resulting in their loss, depletion, or misuse.

Providers

Organizations or individuals who supply services or goods to consumers.

Outreach

Outreach involves the activities or strategies implemented by an organization or individual to connect, inform, or engage with a specific audience or community.

Political Party

An organized group of people with similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.