If an auditor uncovers an illegal act at a public company, the auditor must notify:
A) local law enforcement officials.
B) the Public Company Accounting Oversight Board.
C) the Securities and Exchange Commission.
D) all of the above.

Question

Quizplus · Accepted Answer

The SEC has the responsibility to oversee public company audits and financial reporting. If an auditor uncovers an illegal act, they are required to report it to the SEC. Local law enforcement officials may also need to be notified depending on the nature of the illegal act, but the first point of contact should be the SEC. The Public Company Accounting Oversight Board (PCAOB) is a regulatory body that oversees auditors of public companies, but it does not have the authority to investigate or prosecute illegal acts.

If an Auditor Uncovers an Illegal Act at a Public