Which of the following is correct concerning
requirements about auditor's
communications about fraud?
a. Fraud that involves senior
management should be reported
directly to the audit committee
regardless of the amounts involved.
b. All fraud with a material effect on the
financial statements should be reported
directly by the auditor to the SEC
c. Fraud with a material effect on the
financial statements should ordinarily be
disclosed by the auditor through the use
of an emphasis of a matter paragraph
added to the audit report.
d. The auditor has no responsibility to
disclose fraud outside the entity under
any circumstances
requirements about auditor's
communications about fraud?
a. Fraud that involves senior
management should be reported
directly to the audit committee
regardless of the amounts involved.
b. All fraud with a material effect on the
financial statements should be reported
directly by the auditor to the SEC
c. Fraud with a material effect on the
financial statements should ordinarily be
disclosed by the auditor through the use
of an emphasis of a matter paragraph
added to the audit report.
d. The auditor has no responsibility to
disclose fraud outside the entity under
any circumstances