11. Lynn, CPA, is auditing the financial statements of Exchange Corporation unde

Question

11. Lynn, CPA, is auditing the financial statements of Exchange Corporation under the Federal Securities Exchange Act of 1934. She detects what she believes are probable material illegal acts. What is her duty under the Private Securities Litigation Reform Act?

a. She must inform the principal shareholders within ten days.

b. She must inform the audit committee or the board of directors

c. She need not inform anyone, beyond requiring that the financial statements are presented fairly.

d. She should not inform anyone since she owes a duty of confidentiality to the client.

Explanation / Answer

ANSWER

b) She must inform the audit committee or the board of directors.

SHE IS NOT REQUIRED TO INFORM TO SHAREHOLDERS BUT SHE NEED TO BE INFORM TO AUDIT COMMITTEE.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.