When it is discovered that an important audit procedure was not performed,the SEC imposes sanctions against the audit firm responsible.

Question

Quizplus · Accepted Answer

The SEC (Securities and Exchange Commission) may investigate and take action if it finds significant issues with an audit firm's work, but discovering that an important audit procedure was not performed does not automatically lead to sanctions. The response would depend on the specifics of the situation, including the nature of the missed procedure and its impact on the audit's conclusions.

When It Is Discovered That an Important Audit Procedure Was