If an external auditor suspects wrongdoing in financial statements, the concerns should be addressed to

Question

Quizplus · Accepted Answer

The audit committee is responsible for overseeing the company's financial reporting process and external audit. If an external auditor suspects wrongdoing in financial statements, they should first raise their concerns with the audit committee. The audit committee can then investigate the matter and take appropriate action, such as requesting additional information or hiring an external investigator. If the audit committee does not adequately address the concerns, the auditor may then need to report the matter to higher authorities, such as the board of directors or the Securities and Exchange Commission.

If an External Auditor Suspects Wrongdoing in Financial Statements, the Concerns