An Auditor Discovers a Likely Fraud During an Audit but Concludes

question 57

Multiple Choice

An auditor discovers a likely fraud during an audit but concludes that the overall effect of the fraud is not sufficiently material to affect the audit opinion. The auditor should probably:

• A)disclose the fraud to the appropriate level of the client's management.
• B)disclose the fraud to appropriate authorities external to the client.
• C)discuss with the client the additional audit procedures that will be needed to identify the exact amount of the fraud.
• D)modify the audit program to include tests specifically designed to identify the fraud and its impact on the financial statements.

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Definitions:

High School Dropouts

High School Dropouts refer to individuals who do not complete their secondary education or obtain a high school diploma.

Middle-And Working-Class

Social groups typically defined by their occupational roles, income levels, and educational attainment, often considered the backbone of economic and productive activities in a society.

Ghettos

Urban areas with high concentrations of poverty and minority populations, often characterized by inadequate housing and infrastructure.

Large-Scale

Operations or processes that are done on a large extent or level, often requiring significant resources, infrastructure, or capital.