If a firm failed to disclose billions of dollars in short term debt in its annual financial report that has been distributed to shareholders,who should be found guilty? (i)Directors of the board.(ii)Internal auditor.(iii)External auditor.
A)(i)(ii)(iii)
B)(i)(ii)
C)(ii)(iii)
D)(i)(iii)

Question

Quizplus · Accepted Answer

In this scenario, multiple parties are potentially guilty of wrongdoing. The directors of the board are responsible for ensuring that accurate financial information is disclosed to shareholders, and they may have knowingly or negligently failed to disclose the short term debt. The internal auditor is responsible for reviewing financial records and reporting any irregularities to the board, and they may have failed to detect the unreported debt. Finally, the external auditor is responsible for reviewing the company's financial records and attesting to their accuracy, and they may have either failed to detect the unreported debt or colluded with the company to conceal it. Therefore, all three parties could be held responsible for the failure to disclose the debt, and the best choice is A) (i)(ii)(iii).

If a Firm Failed to Disclose Billions of Dollars in Short