Which of the Following Statements Is Correct Regarding the Auditor's

question 964

Multiple Choice

Which of the following statements is correct regarding the auditor's consideration of the possibility of illegal acts by clients?

• A) The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance that no illegal acts have been committed by clients.
• B) The auditor's training, experience, and understanding of the client should be used to provide a basis for the determination as to whether illegal acts have occurred.
• C) If specific information concerning an illegal act comes to the auditor's attention, the auditor should apply audit procedures specifically directed to ascertaining whether an illegal act has occurred.
• D) If an illegal act has occurred, the auditor should express a qualified opinion or an adverse opinion on the financial statements taken as a whole.

---

Definitions:

Devil's Advocate

A person who adopts a contrary position for the sake of argument or to explore the validity of a perspective.

Team Meetings

Gatherings of team members to discuss progress, strategies, and issues within a project or organization.

Founding Team

The original group of individuals who establish a company, working together to bring the business concept to reality.

Passion

An intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals.