Which of the following is incorrect concerning required auditor communications about fraud?

A. Fraud that causes a material misstatement and involves senior management should be reported directly by the auditor to the audit committee.

B. Fraud with a material effect on the financial statements should be reported directly by the auditor to the Securities and Exchange Commission.

C. Whenever the auditor has found evidence that a fraud may exist, that matter should be brought to the attention of an appropriate level of management

D. Communications to a successor auditor when the successor makes inquiries of the predecessor auditor about the client is a permissible disclosure of fraud to outside parties.