Question

A form 8-K is used____________.

A. To file a company's audited financial statements.
B. For management to report a change of auditors, and the reason for the change.
C. For management to report a change of internal auditors, and the reason for the change.
D. To disclose fraudulent transactions that have occurred within a company to the Securities and Exchange Commission (SEC).

Answer 1

The correct answer is B. Form 8-K is used for management to report a change of auditors and the reason for the change. This form helps maintain transparency in the financial reporting process and ensures that investors have access to relevant information about the company.

Step-by-step explanation:

The correct answer is B. Form 8-K is used for management to report a change of auditors and the reason for the change.

Form 8-K is a filing form required by the Securities and Exchange Commission (SEC) for companies to disclose significant events or changes that shareholders and potential investors should be aware of. This includes reporting changes to auditors and providing the reason for the change. The form helps maintain transparency in the financial reporting process and ensures that investors have access to relevant information about the company.

For example, if a company decides to change its auditing firm due to a conflict of interest or poor performance, it would use Form 8-K to inform the SEC and shareholders about the change and its rationale.

The correct option is B. For management to report a change of auditors, and the reason for the change.