When fraud is discovered, _______.
A)auditors should immediately contact the Securities and Exchange Commission (SEC)
B)auditors should determine the amounts involved, and then decide whether to report the fraud to management
C)auditors gather sufficient appropriate evidence to support their conclusion
D)the matter should immediately be referred to the internal audit function

Question

Quizplus · Accepted Answer

When fraud is discovered, auditors should gather sufficient appropriate evidence to support their conclusion before deciding whether to report the fraud to management or higher authorities. Contacting the SEC or internal audit without proper evidence may result in false accusations or insufficient investigation.

When Fraud Is Discovered, _______