An Auditor Who Discovers That a Client's Employees Paid Small

question 49

Multiple Choice

An auditor who discovers that a client's employees paid small bribes to municipal officials most likely would withdraw from the engagement if:

• A)the payments violated the client's policies regarding the prevention of illegal acts.
• B)the client receives financial assistance from a federal government agency.
• C)documentation that is necessary to prove that the bribes were paid does not exist.
• D)management fails to take the appropriate remedial action.

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