Final answer:
In the context of colleges and universities, the Clery Act mandates the disclosure of certain types of criminal activities in an annual security report.
Step-by-step explanation:
If securities are missing as a result of an internal audit and criminal activity is not suspected, it may not necessarily trigger a requirement to file a report in the context of general business practices. However, if this scenario pertains to a college or university setting, the institution may be obligated under the Clery Act to disclose information about specific criminal activities and security issues in an annual security report.
While securities missing may not fall under the specifically required disclosures, the Act does mandate transparency regarding campus crime and security which must be made available to current and prospective students and employees. The Clery Act also requires colleges and universities to keep a public crime log, issue warnings for crimes that pose a threat, and develop emergency response strategies, among other requirements.
In the banking sector, following the recession of 2008-2009, criticisms were directed at bank regulators concerning the transparency and timeliness of identifying financial instability in banks, as U.S. laws require bank supervisors to make findings public and swiftly act upon problems identified. Therefore, in certain industries such as banking, missing securities and similar issues may prompt a report to be filed with regulatory bodies.