During a routine audit of the fast-food chain Waffles-N-Syrup, an auditor notices that some of the expenses were incorrectly filed as payroll accounts instead of expense accounts, and as a result payroll taxes were taken out of them and checks were generated. Which type of act has the company committed?

An auditing malfeasance

Legal, non-material direct effect

Illegal act, material direct effect

Illegal, material but not indirect effect