When the Auditor Believes an Illegal Act May Have Occurred

question 72

Multiple Choice

When the auditor believes an illegal act may have occurred, it is necessary to:

• A) consider accumulating additional evidence to determine if there is actually an illegal act.
• B) inquire of management, at a level above those likely to be involved with illegality.
• C) consult with the client's legal counsel.
• D) do all three of the above.

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Definitions:

Psychotropic Drugs

Medications that affect the mind, emotions, or behavior by altering the chemistry of the brain.

Mental Institutions

Facilities designed for the treatment, care, and support of individuals with mental illnesses, historically referred to as asylums.

Deinstitutionalization Programs

Initiatives aimed at relocating individuals with mental illness from psychiatric hospitals or long-term care facilities to community-based settings, emphasizing outpatient care and support.

Dropout Rates

The percentage of individuals who leave an educational institution without completing their course of study.