During the course of auditing a company's financial statements, a CPA discovers that the CFO has absconded with a large amount of money. As a result, the company probably will have to go out of business. Under the '34 Act, how is the auditor required to report this?

During the course of auditing a company's financial statements, a CPA discovers that the CFO has absconded with a large amount of money. As a result, the company probably will have to go out of business. Under the '34 Act, how is the auditor required to report this?

During the course of auditing a company's financial statements, a CPA discovers that the CFO has absconded with a large amount of money. As a result, the company probably will have to go out of business. Under the '34 Act, how is the auditor required to report this?






A) It must be reported as a statement of "substantial doubt" about the issuer's ability to continue as a going concern.
B) It must be reported immediately by the auditor to law enforcement
C) It must be reported within 14 days by the auditor to the SEC
D) It must be reported immediately in an amended registration filing








Answer: A