When an Auditor Believes That an Illegal Act May Have

question 36

True/False

When an auditor believes that an illegal act may have occurred, the first step he or she should take is to gather additional evidence to determine the extent of the illegality and if there is a direct impact on the financial statements.

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Definitions:

Buying Decision

The process by which a consumer decides whether to purchase a product or service, influenced by factors like needs, desires, and budget.

Startup

A newly established business, often in the tech sector, focusing on a unique product or service aiming for rapid growth.

Salesperson

An individual who sells goods or services to customers, aiming to meet their needs and drive company revenue.

Online Sources

Digital or internet-based platforms and tools that provide information, products, or services.