The auditors' responsibility to communicate findings with respect to fraud can best be summarized as:
A)Communicate to the audit committee the existence of fraud but not the amount involved
B)Communicate to the audit committee both material and immaterial amounts of fraud that are detected
C)Communicate to the SEC the existence of fraud but not the amount involved
D)Communicate to the SEC both material and immaterial amounts of fraud that are detected

Question

Quizplus · Accepted Answer

Auditors are required to communicate both material and immaterial fraud findings to the audit committee, as the committee is responsible for oversight of the financial reporting process.

The Auditors' Responsibility to Communicate Findings with Respect to Fraud