An Auditor Concludes That a Client Has Committed an Illegal

question 264

Multiple Choice

An auditor concludes that a client has committed an illegal act that has not been properly accounted for or disclosed. The auditor should withdraw from the engagement if the:

• A) Auditor is precluded from obtaining sufficient appropriate evidence about the illegal act.
• B) Illegal act has an effect on the financial statements that is both material and direct.
• C) Auditor cannot reasonably estimate the effect of the illegal act on the financial statements.
• D) Client refuses to accept the auditor's report as modified for the illegal act.

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Definitions:

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