An auditor for Ralco Accounting firm was auditing the financial statements of E-prise. The auditor suspected that E-prise was engaged in illegal activity. Under the Securities Exchange Act of 1934, the auditor is required to notify E-prise's board of directors of the suspicions.

Question

Quizplus · Accepted Answer

Under the Securities Exchange Act of 1934, auditors are required to report any suspicions of illegal activities to the company's board of directors as part of their duty to ensure the integrity of financial statements.

An Auditor for Ralco Accounting Firm Was Auditing the Financial