An Auditor Who Discovers That Client Employees Have Committed an Illegal

question 19

Multiple Choice

An auditor who discovers that client employees have committed an illegal act that has a material effect on the client's financial statements most likely would withdraw from the engagement if:

• A)the noncompliance is a violation of generally accepted accounting principles.
• B)the client does not take the remedial action that the auditor considers necessary.
• C)the illegal act was committed during a prior year that was not audited.
• D)the auditor has already assessed control risk at the maximum level.

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Definitions:

Gene-Environment Correlations

Refers to the phenomenon that an individual's genetic makeup influences their exposure to certain environmental factors.

Genetic Counseling

A professional service providing individuals and families with information about genetic conditions, risks, testing, and management.

Passive Gene-Environment Correlations

Instances where an individual's inherited characteristics influence the environment they are raised in.

Sex Chromosome Abnormalities

Genetic conditions that result from anomalies in the number or structure of sex chromosomes, affecting sexual development and health.