Accountants are required to inform managerial authorities of fraud they have
discovered, but are not required to inform outside entities.

Question

Quizplus · Accepted Answer

Accountants have a duty of confidentiality to their clients, which means they cannot disclose information without their client's consent. However, if an accountant discovers fraud during their work, they are required to inform the managerial authorities within the organization. They may also have a professional and ethical duty to report the fraud to higher levels of management or governance within the organization. However, they are not required to inform outside entities such as the media or law enforcement agencies without their client's consent or a legal obligation to do so.

Accountants Are Required to Inform Managerial Authorities of Fraud They