Auditors are increasingly obligated to report illegal acts to third parties outside the company in which they occurred.

Question

Quizplus · Accepted Answer

Auditing standards require auditors to report material illegal acts to those charged with governance of the company, and in some cases, to a regulatory agency or law enforcement if necessary. This obligation exists to uphold the integrity of financial reporting and to protect the public interest.

Auditors Are Increasingly Obligated to Report Illegal Acts to Third