Question

Which of the following is NOT a requirement of Section 10A of the Securities Exchange Act of 1934 for auditors of public companies with respect to illegal acts?a. Determine whether it is likely that an illegal act has occurredb. Determine what the possible effect of the illegal act is on the financial statementsc. Determine whether management participated in the illegal actd. Inform management and assure that the audit committee knows about any material illegal act that has been detected

Answer 1

The correct answer is Determine whether management participated in the illegal actd

Securities Exchange Act of 1934 is a law governing secondary trading of securities in the United States of America. A framework of comprehensive legislation, related statutes form the basis of regulation of financial markets and their participants in the United States.