While performing an audit of a public company,the auditors discovered material illegal acts and resigned due to the client's refusal to disclose them.The auditors' reason for resignation should be disclosed through:

$\begin{array} { lc c }
& \text { CPA Direct Corrrrurucation With } & \
\text { Item} & \text {Shareholders } & \text { The Process of Filing } \
\text { A } & \text { Yes } & \text { Yes } \ \text { B. } & \text { No } & \text { Yes } \ \text { C. } & \text { Yes } & \text { No } \ \text { D. } & \text { No } & \text { No } \end{array}$

Question

While performing an audit of a public company,the auditors discovered material illegal acts and resigned due to the client's refusal to disclose them.The auditors' reason for resignation should be disclosed through:

$\begin{array} { lc c } 
  & \text { CPA Direct Corrrrurucation With } &   \
\text { Item} & \text {Shareholders } & \text { The Process of Filing } \
 \text { A } & \text { Yes } & \text { Yes } \ \text { B. } & \text { No } & \text { Yes } \ \text { C. } & \text { Yes } & \text { No } \ \text { D. } & \text { No } & \text { No } \end{array}$

Quizplus · Accepted Answer

When auditors resign due to the discovery of material illegal acts that the client refuses to disclose, they are required to ensure the reason for their resignation is disclosed through the process of filing with the appropriate regulatory bodies, but direct communication with shareholders is not mandated.

While Performing an Audit of a Public Company,the Auditors Discovered