Which of the Following Statements Is True Regarding an Accountant's

question 161

Multiple Choice

Which of the following statements is true regarding an accountant's consideration of fraud/illegal acts in compilation and review engagements?

• A) The accountant is not required to perform procedures designed to detect material misstatements due to fraud or illegal acts.
• B) The accountant must inform an appropriate level of management of all instances of fraud or illegal acts.
• C) The accountant must report only definite instances of fraud or an illegal act, but need not report information indicating that fraud or an illegal act may have occurred.
• D) Information indicating that fraud or an illegal act may have occurred should be reported in writing to an appropriate level of management.

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Definitions:

Megakaryoblast

Cell that gives rise to platelets or thrombocytes.

Lymphoblast

Cell that matures into a lymphocyte.

Monoblast

Cell that matures into a monocyte.

Myeloblast

Immature cell from which the different granulocytes develop.