When the Auditor Believes an Illegal Act May Have Occurred

question 62

Multiple Choice

When the auditor believes an illegal act may have occurred, it is necessary to:

• A) consult with the client's legal counsel.
• B) inquire of management, at a level above those likely to be involved with illegality.
• C) consider accumulating additional evidence to determine if there is actually an illegal act.
• D) all of the above

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Definitions:

Mindfulness

A moment-to-moment present awareness with an attitude on non-judgment, acceptance, and openness. Mindfulness meditative practices are effective in reducing psychological and physical symptoms or perceptions of stress.

Tolerate Uncertain

The ability to remain calm and functional despite not knowing outcomes or having incomplete information.

Autonomic Physiological Functions

Bodily functions that are not consciously controlled, such as heart rate, digestion, and respiratory rate.

Biofeedback

A technique that teaches patients to control bodily processes that are normally involuntary, like heart rate or blood pressure, through monitoring and feedback.