Management fraud must be immediately reported by the auditor to the SEC rather than wasting time reporting it to the audit committee or board of directors.

Question

Quizplus · Accepted Answer

The auditor must first report management fraud to the audit committee or board of directors, and only then, if the response is inadequate, report to the SEC. The auditor should not delay reporting to the appropriate level within the company.

Management Fraud Must Be Immediately Reported by the Auditor to the SEC