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:

Artifact Theory

A concept that suggests perceptions or interpretations of data can be influenced by inherent biases or flaws in the measurement process.

Hormone Theory

A concept suggesting that hormones play a central role in determining behavior and physiological processes.

Cognitive Triad Theory

A model in cognitive therapy that focuses on an individual’s negative evaluations of themselves, their world, and their future.

Biochemical Characteristics

Molecular and chemical properties of biological systems, such as enzymes, hormones, and other substances.