An auditor has uncovered suspicious expense reimbursements paid to the chief executive officer of its audit client.What should the auditor do?
A)Discuss the matter with the chief executive officer.
B)Report the matter in writing to the chief financial officer.
C)Report the matter in writing to the audit committee.
D)Report the matter in writing to the federal government.

Question

Quizplus · Accepted Answer

The auditor should report the suspicious expense reimbursements in writing to the audit committee. This is because reporting it to the CEO or CFO may result in a conflict of interests and can hinder the investigation process. Reporting it to the federal government is not necessary at this stage, as the audit committee can take appropriate action and handle the matter internally.

An Auditor Has Uncovered Suspicious Expense Reimbursements Paid to the Chief