Which of the Following Is the Auditor Least Likely to Do

question 181

Multiple Choice

Which of the following is the auditor least likely to do when aware of an illegal act?

• A) discuss the matter with the client's legal counsel
• B) obtain evidence about the potential effect of the illegal act on the financial statements
• C) contact the local law enforcement officials regarding potential criminal wrongdoing
• D) consider the impact of the illegal act on the relationship with the company's management

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Definitions:

Exported Chairs

Chairs that are manufactured in one country and sold to customers in foreign countries.

Purchasing Power

The capacity of an individual or group to buy goods and services with a given amount of currency, influenced by inflation and economic conditions.

Imported Goods

Products or commodities that are brought into a country from abroad for sale.

Revenue

Revenue is the total income generated by a company or individual from their normal business operations or activities.