Under the Private Securities Litigation Reform Act (PSLRA), if an auditor concludes that an illegal act with a material effect on the financial statements has been reported to, but not dealt with by senior management, the auditor should next report his/her conclusions to:

Question

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The PSLRA requires auditors to report any illegal act with a material effect on the financial statements to senior management. If senior management fails to take appropriate action, the auditor should report his/her conclusions to the company's board of directors, who have the ultimate responsibility for oversight of the company's financial reporting. The SEC may also be notified, but only after the board of directors has been informed. The office of the controller/comptroller for the appropriate state or the Federal Bureau of Investigation may also be contacted depending on the nature of the illegal act, but the board of directors should be the first course of action in all cases.

Under the Private Securities Litigation Reform Act (PSLRA), If an Auditor