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.

---

Definitions:

Physiological Needs

These are basic physical requirements for human survival, such as food, water, and shelter, as ranked at the bottom of Maslow's hierarchy of needs.

Self-Actualization

A psychological state or process of realizing and fulfilling one's talents, capacities, and potentialities.

Lowest Level

The minimum or most basic tier in a hierarchy or scale.

Instinctoid

A term used to describe behaviors or instincts that are innate but can be modified by environmental factors.