McGee is auditing Nevus Corporation and detects probable criminal activity by one of the employees. McGee believes this will have a material impact on the financial statements. The financial statements of Nevus Corporation are under the Securities Exchange Act of 1934. Which of the following is correct?
- McGee should report this to the Securities Exchange Commission.
- McGee should report this to the Justice Department.
- McGee should report this to Nevus Corporation’s audit committee or board of directors.
- McGee will discharge his duty by requiring that a note of this be included in the financial statements.