Auditors report fraud _______.
A)to the Securities and Exchange Commission (SEC) within 72 hours
B)to a level of management at least one level above the level where the fraud occurred
C)directly to the manager that is suspected of involvement in the fraud
D)to the level below where the auditor suspects the fraud is occurring

Question

Quizplus · Accepted Answer

According to auditing standards, auditors are required to report known or suspected fraud to a level of management at least one level above the level where the fraud occurred. Reporting directly to the manager suspected of involvement in the fraud or to a level below where the fraud is suspected would be inappropriate and could hinder the investigation of the fraud. Reporting to the SEC within 72 hours may be required under certain circumstances, but it is not the first step in reporting fraud.

Auditors Report Fraud _______