Question

select all that apply when should auditors bring matters relating to fraud to the attention of the appropriate level of management? (check all that apply.) multiple select question. fraud may cause a material misstatement in the financial statements if the audit committee fails to act on the notification of possible fraud after being informed of the possibility by the sec after a minor misappropriation of assets is discovered

Answer 1

Auditors should bring matters relating to fraud to the attention of management if it may cause material misstatement in financial statements, if the audit committee fails to act on the notification, or if a minor misappropriation of assets is discovered.

Step-by-step explanation:

Auditors should bring matters relating to fraud to the attention of the appropriate level of management in several situations:

1. If the fraud may cause a material misstatement in the financial statements.
2. If the audit committee fails to act on the notification of possible fraud after being informed of the possibility.
3. If a minor misappropriation of assets is discovered.

In these situations, auditors have a responsibility to inform management to ensure that appropriate action is taken to address the fraud.