When an Auditor Knows That an Illegal Act Has Occurred

question 180

Multiple Choice

When an auditor knows that an illegal act has occurred, he or she must

• A) report it to the proper governmental authorities.
• B) consider the effects on the financial statements, including the adequacy of disclosure.
• C) withdraw from the engagement.
• D) issue an adverse opinion.

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Definitions:

Rosters

Lists or registers of individuals or items organized for specific purposes, often related to scheduling or membership.

Specific Trades

Refers to specialized occupational skills or vocations, often requiring manual skills and special training, such as carpentry, plumbing, or electrical work.

Recruiting Abroad

The process of identifying, attracting, and hiring candidates from other countries for employment, often to fill skill shortages or diversify the workforce.

Employment Visas

Official documents or permissions granted by a government allowing foreign nationals to work within its borders for a predetermined period.