Disclosure of fraud to parties other than a client's senior management, those charged with governance, or its board of directors ordinarily is not part of an auditor's responsibility. However, to which of the following outside parties may a duty to disclose irregularities exist?

Question

Quizplus · Accepted Answer

Choice "d" is correct. The accountant may have a duty to disclose irregularities to all of the following outside parties: Yes - The SEC when the client reports an auditor change. Yes - A successor auditor when the successor makes appropriate inquiries. Yes - A government funding agency from which the client receives financial assistance. Choices "a", "b", and "c" are incorrect, based on the above explanation.

Disclosure of Fraud to Parties Other Than a Client's Senior