Under the 2010 Dodd-Frank Act, which statement describes whistleblowing by accountants?

• A. No accountant may receive a reward
• B. All accountants who whistle-blow are protected but may not receive a reward
• C. Internal auditors who whistle-blow may not receive a reward
• D. A CPA may report a violation of a public accounting firm’s performance in an audit

Answer: (D)

The key idea is that the Dodd-Frank Act creates a whistleblower program that rewards and protects individuals who report securities-law violations discovered in the course of work, including accountants. A CPA who reports a violation related to how a public accounting firm conducts or performs an audit can fall under this program, provided the information is original and leads to an SEC enforcement action with penalties. If those conditions are met, the whistleblower may receive a monetary award, and is protected from retaliation. This makes the statement about a CPA reporting a violation in an audit scenario consistent with how the act operates.