If an audit turns up a suspicious transaction or entry, the accountant ________.

Question

Quizplus · Accepted Answer

Accountants, upon discovering a suspicious transaction or entry during an audit, are obligated to further investigate the matter and report their findings to the client. This approach ensures that any potential issues are addressed directly with the client, allowing for clarification, correction, or further action as needed. Reporting to regulatory bodies like the PCAOB or the SEC is guided by specific circumstances and legal requirements, not an immediate obligation upon discovery of a suspicious item.

If an Audit Turns Up a Suspicious Transaction or Entry