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.

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Definitions:

Economic Downturn

An economic downturn is a period when economic activity and performance decline, marked by reduced industrial production, unemployment, and a fall in spending.

Clothing Allowance

A sum of money given to cover the cost of clothing, often as part of a job requirement or allowance.

Purchase Discount

A reduction in price offered to buyers, often as an incentive to make a purchase within a specific timeframe or in larger quantities.

Neutral Subject Line

A subject line in an email or message that is impartial or without bias, often used to avoid influencing the recipient's initial reaction.