Reference no: EM132829719

Problem 1: Which of the following is most accurate regarding an auditor's required communications about fraud-related issues?

a. Fraud having a material effect on the financial statements should be reported directly by the auditor to the Securities and Exchange Commission.
b. Any requirement to disclose fraud outside the entity is solely the responsibility of management whereas the auditor has no such responsibility.
c. Fraud that involves senior management should be reported directly by the auditor to those charged with governance whether the fraud is material or not.
d. The professional standards provide no requirements related to the communication of fraud, but auditors should use their professional judgment in that regard.
e. Fraud that involves senior management need not be communicated to anyone if that fraud is determined to be immaterial.