Disclosure of fraud to parties other than a client’s senior management and its audit committee or board of directors ordinarily is not part of an auditor’s responsibility. However, to which of the following outside parties may a duty to disclose fraud exist?
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To the SEC when the client reports an auditor change |
To a successor auditor when the successor makes appropriate Inquiries |
To a government funding agency from which the client receives financial assistance |
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a. |
Yes |
Yes |
No |
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b. |
Yes |
No |
Yes |
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c. |
No |
Yes |
Yes |
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d. |
Yes |
Yes |
Yes |